
	May 1, 2026		January 30, 2026
	(in millions)
Defense and Intelligence	$	2,094	$	2,094
Civilian	850		850
Total	$	2,944	$	2,944

Goodwill is not amortized, but rather tested for potential impairment annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The goodwill impairment test is performed at the reporting unit level. As a result of the internal reorganization on January 31, 2026, the Company reallocated its goodwill to its three new goodwill reporting units.

The Company performed a goodwill impairment test immediately before and after the reorganization, both of which resulted in no impairment. For the goodwill impairment test immediately after the reorganization, the Company performed a quantitative assessment of its goodwill as of January 31, 2026 for its three new goodwill reporting units. The Company estimated the fair value of each reporting unit using a 50:50 weighting of fair values derived from an income approach and market approach.

Under the income approach, the Company estimated the fair value of its reporting units using a multi-year discounted cash flow model involving assumptions about projected future revenue growth, operating margins, income tax rates, capital expenditures, discount rate, and terminal value. Under the market approach, the Company estimated the fair value of its reporting units based on multiples of earnings derived from observable market data of comparable public companies.


	May 1, 2026						January 30, 2026
	Gross carrying value		Accumulated amortization		Net carrying value		Gross carrying value		Accumulated amortization		Net carrying value
	(in millions)
Customer relationships	$	1,551	$	(835)	$	716	$	1,551	$	(804)	$	747
Developed technology	19		(7)		12		19		(6)		13
Backlog	2		(1)		1		2		(1)		1
Total intangible assets	$	1,572	$	(843)	$	729	$	1,572	$	(811)	$	761

Amortization expense related to intangible assets was $32 million and $29 million for the three months ended May 1, 2026 and May 2, 2025, respectively. There were no intangible asset impairment losses during the periods presented.

As of May 1, 2026, the estimated future annual amortization expense related to intangible assets is as follows:


Fiscal Year	(in millions)
Remainder of 2027	$	94
2028	108
2029	108
2030	105
2031	98
Thereafter	216
Total	$	729

Actual amortization expense in future periods could differ from these estimates as a result of future acquisitions, divestitures, impairments, and other factors.