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Acquisitions, Goodwill and Intangible Assets | 3 Months Ended
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Apr. 04, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Acquisitions, Goodwill and Intangible Assets | Note 3–Acquisitions, Goodwill and Intangible Assets BUSINESS ACQUISITION On March 10, 2025, we entered into a definitive agreement to acquire a full spectrum cyber company for a preliminary purchase price of $300 million, subject to working capital and other customary adjustments. The transaction is expected to be completed in the second quarter of 2025, subject to the satisfaction or waiver of customary closing conditions. The company develops offensive and defensive cyber platforms and other solutions for the U.S. Government. GOODWILL The following table presents changes in the carrying amount of goodwill by reportable segment:
(in millions) | National Security & Digital |  | Health & Civil |  | Commercial & International |  | Defense Systems |  | Total
Goodwill at December 29, 2023(1) | $ | 2,758 |  |  | $ | 1,366 |  |  | $ | 800 |  |  | $ | 1,188 |  |  | $ | 6,112 |
Foreign currency translation adjustments | — |  |  | — |  |  | (28) |  |  | — |  |  | (28) |
Goodwill at January 3, 2025(1) | 2,758 |  |  | 1,366 |  |  | 772 |  |  | 1,188 |  |  | 6,084 |
Foreign currency translation adjustments | — |  |  | — |  |  | 14 |  |  | — |  |  | 14 |
Goodwill at April 4, 2025(1) | $ | 2,758 |  |  | $ | 1,366 |  |  | $ | 786 |  |  | $ | 1,188 |  |  | $ | 6,098 |
(1) Carrying amount includes accumulated impairment loss of $596 million within the Commercial & International segment. We evaluate qualitative factors that could cause us to consider whether the estimated fair value of each of our reporting units may be lower than the carrying value and trigger a quantitative assessment, including, but not limited to (i) macroeconomic conditions, (ii) industry and market considerations, (iii) our overall financial performance, including an analysis of our current and projected cash flows, revenues and earnings, (iv) a sustained decrease in share price and (v) other relevant entity-specific events including changes in management, strategy, partners or litigation. During the three months ended April 4, 2025, and March 29, 2024, there were no impairments to goodwill. INTANGIBLE ASSETS Intangible assets, net consisted of the following:
| April 4, 2025 |  | January 3, 2025
(in millions) | Gross carrying value |  | Accumulated amortization |  | Net carrying value |  | Gross carrying value |  | Accumulated amortization |  | Net carrying value
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Programs | $ | 1,687 |  |  | $ | (1,317) |  |  | $ | 370 |  |  | $ | 1,686 |  |  | $ | (1,293) |  |  | $ | 393 |
Software and technology | 262 |  |  | (171) |  |  | 91 |  |  | 261 |  |  | (165) |  |  | 96 |
Customer relationships | 53 |  |  | (29) |  |  | 24 |  |  | 52 |  |  | (28) |  |  | 24 |
Total finite-lived intangible assets | 2,002 |  |  | (1,517) |  |  | 485 |  |  | 1,999 |  |  | (1,486) |  |  | 513 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Trade names | 4 |  |  | — |  |  | 4 |  |  | 4 |  |  | — |  |  | 4 |
Total intangible assets | $ | 2,006 |  |  | $ | (1,517) |  |  | $ | 489 |  |  | $ | 2,003 |  |  | $ | (1,486) |  |  | $ | 517 |
Amortization expense was $30 million and $37 million for the three months ended April 4, 2025, and March 29, 2024, respectively. Program intangible assets are amortized over their respective estimated useful lives in proportion to the pattern of economic benefit based on expected future discounted cash flows. Customer relationships and software and technology intangible assets are amortized either on a straight-line basis over their estimated useful lives or over their respective estimated useful lives in proportion to the pattern of economic benefit based on expected future discounted cash flows, as deemed appropriate. The estimated annual amortization expense as of April 4, 2025, was as follows:
Fiscal year ending (in millions) |
2025 (remainder of year) | $ | 90 |
2026 | 98 |
2027 | 72 |
2028 | 62 |
2029 | 53 |
2030 and thereafter | 110 |
| $ | 485 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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