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ACQUISITIONS AND DIVESTITURES (Tables) | 6 Months Ended
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Jun. 28, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
Schedule of Business Acquisitions Consideration Transferred | As of the acquisition date, the fair value of consideration transferred consisted of the following:
(In millions) | July 28, 2023
Cash consideration paid for AJRD outstanding common stock & equity awards | $ | 4,748 |
AJRD debt settled by L3Harris | 257 |
Cash consideration paid | 5,005 |
Less cash acquired | (290) |
Fair value of consideration transferred | $ | 4,715 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of the fair value of consideration transferred to assets acquired and liabilities assumed as of the acquisition date:
| July 28, 2023
(In millions) | Preliminary |  | Measurement Period Adjustments, Net(1) |  | Preliminary Adjusted
Receivables | $ | 156 |  |  | $ | — |  |  | $ | 156 |
Contract assets | 338 |  |  | (141) |  |  | 197 |
Inventories | 14 |  |  | — |  |  | 14 |
Other current assets | 117 |  |  | 22 |  |  | 139 |
Property, plant and equipment | 574 |  |  | 10 |  |  | 584 |
Goodwill | 2,348 |  |  | 513 |  |  | 2,861 |
Other intangible assets | 2,860 |  |  | — |  |  | 2,860 |
Other non-current assets | 609 |  |  | 66 |  |  | 675 |
Total assets acquired | $ | 7,016 |  |  | $ | 470 |  |  | $ | 7,486 |
Current portion of long-term debt, net | $ | 1 |  |  | $ | — |  |  | $ | 1 |
Accounts payable | 145 |  |  | — |  |  | 145 |
Contract liabilities | 310 |  |  | 152 |  |  | 462 |
Compensation and benefits | 116 |  |  | 1 |  |  | 117 |
Income taxes payable | 6 |  |  | (3) |  |  | 3 |
Other accrued items | 278 |  |  | 335 |  |  | 613 |
Long-term debt, net | 41 |  |  | — |  |  | 41 |
Deferred income taxes | 398 |  |  | (41) |  |  | 357 |
Other long-term liabilities | 1,006 |  |  | 26 |  |  | 1,032 |
Total liabilities assumed | $ | 2,301 |  |  | $ | 470 |  |  | $ | 2,771 |
Fair value of consideration transferred | $ | 4,715 |  |  | $ | — |  |  | $ | 4,715 |
_______________ (1)Fair value adjustments during the measurement period primarily related to EAC updates for circumstances existing at the acquisition date, including updates to the forward loss provision and off-market customer contract reserve described below, refinements to the fair value of fixed assets, as well as corresponding adjustments to the deferred tax liability account which was partially offset by the release of a portion of the uncertain tax position previously recorded by AJRD.
Schedule of Identifiable Intangible Assets Acquired | The preliminary fair value and weighted-average amortization period of identifiable intangible assets acquired as of the acquisition date are as follows:
| Total |  | Useful Lives
| (In millions) |  | (In Years)
Customer relationships: |  |  |
Backlog | $ | 355 |  |  | 3
Government programs | 2,385 |  |  | 15 - 20
Total customer relationships | 2,740 |  |  |
Trade names | 120 |  |  | 15
Total identifiable intangible assets acquired | $ | 2,860 |  |  |
Schedule of Business Divestitures and Asset Sales | The carrying amounts of assets and liabilities of the CAS Disposal Group classified as held for sale in our Condensed Consolidated Balance Sheet were as follows:
(In millions) | June 28, 2024 |  | December 29, 2023 |  |
Receivables, net | $ | 96 |  |  | $ | 80 |  |  |
Contract assets | 41 |  |  | 43 |  |  |
Inventories | 165 |  |  | 145 |  |  |
Other current assets | 22 |  |  | 33 |  |  |
Property, plant and equipment, net | 42 |  |  | 41 |  |  |
Goodwill | 534 |  |  | 534 |  |  |
Other intangible assets, net | 262 |  |  | 263 |  |  |
Other non-current assets | 48 |  |  | 44 |  |  |
Valuation allowance | (83) |  |  | (77) |  |  |
Total assets held for sale | $ | 1,127 |  |  | $ | 1,106 |  |  |
Accounts payable | $ | 86 |  |  | $ | 111 |  |  |
Contract liabilities | 44 |  |  | 48 |  |  |
Compensation and benefits | 8 |  |  | 11 |  |  |
Other accrued items | 43 |  |  | 38 |  |  |
Other long-term liabilities | 62 |  |  | 64 |  |  |
Total liabilities held for sale | $ | 243 |  |  | $ | 272 |  |  |

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