v3.26.1
GOODWILL AND INTANGIBLE ASSETS (Tables)
 6 Months Ended
Jul. 03, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Schedule of Changes in Carrying Amounts of Goodwill
Changes in the carrying amount of goodwill, by business segment, were as follows:
(In millions)SMSCSDMSLTotal
Balance as of January 2, 2026(1)
$9,005 $7,712 $3,293 $20,010 
Currency translation adjustments(9)(5)— (14)
Balance as of July 3, 2026
$8,996 $7,707 $3,293 $19,996 
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(1)Balances reflect impact of segment reorganization, as discussed in Note A: Basis of Presentation in these Notes. Information on the reallocation of goodwill in connection with the reorganization can be found under the “Reallocation of Goodwill in Segment Reorganization” heading in Note E: Goodwill and Intangible Assets in our Form 10-Q for first quarter 2026, which is incorporated herein by reference.
Schedule of Indefinite-Lived Intangible Assets
Intangible assets, net are summarized below:
July 3, 2026January 2, 2026
(In millions)Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Customer relationships(1)
$8,316 $(4,337)$3,979 $8,329 $(4,031)$4,298 
Developed technologies(1)
847 (570)277 849 (544)305 
Trade names(1)
174 (79)95 175 (75)100 
Program investment(2)
386 — 386 — — — 
Other4 (4)— 6 (3)3 
Total finite-lived intangible assets9,727 (4,990)4,737 9,359 (4,653)4,706 
Trade name(3)
1,803 — 1,803 1,803 — 1,803 
Intangible assets, net$11,530 $(4,990)$6,540 $11,162 $(4,653)$6,509 
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(1)Includes acquisition-related intangibles that benefit the entire Company. As such, these assets and associated amortization are reported at Corporate.
(2)The program investment asset, reported within our Missile Solutions segment, represents the fair value in excess of cash proceeds from our issuance of preferred stock, embedded derivative instruments and warrants related to the DoW strategic investment. This asset will be amortized on a straight-line basis over its estimated useful life of 20 years, commencing upon achievement of a milestone. See Note B: Strategic Investment in Subsidiary in these Notes.
(3)Includes the Corporate trade name, which benefits the entire Company and is reported at Corporate.
Schedule of Finite-Lived Intangible Assets
Intangible assets, net are summarized below:
July 3, 2026January 2, 2026
(In millions)Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Customer relationships(1)
$8,316 $(4,337)$3,979 $8,329 $(4,031)$4,298 
Developed technologies(1)
847 (570)277 849 (544)305 
Trade names(1)
174 (79)95 175 (75)100 
Program investment(2)
386 — 386 — — — 
Other4 (4)— 6 (3)3 
Total finite-lived intangible assets9,727 (4,990)4,737 9,359 (4,653)4,706 
Trade name(3)
1,803 — 1,803 1,803 — 1,803 
Intangible assets, net$11,530 $(4,990)$6,540 $11,162 $(4,653)$6,509 
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(1)Includes acquisition-related intangibles that benefit the entire Company. As such, these assets and associated amortization are reported at Corporate.
(2)The program investment asset, reported within our Missile Solutions segment, represents the fair value in excess of cash proceeds from our issuance of preferred stock, embedded derivative instruments and warrants related to the DoW strategic investment. This asset will be amortized on a straight-line basis over its estimated useful life of 20 years, commencing upon achievement of a milestone. See Note B: Strategic Investment in Subsidiary in these Notes.
(3)Includes the Corporate trade name, which benefits the entire Company and is reported at Corporate.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense Future estimated amortization expense for intangible assets is as follows:
(In millions)Remaining Fiscal 2026Fiscal 2027Fiscal 2028Fiscal 2029Fiscal 2030ThereafterTotal
Amortization expense$295 $550 $478 $422 $405 $2,587 $4,737