Beginning the first day of fiscal 2026, we completed a business realignment, which resulted in new reportable segments (see "Note 10–Business Segments").

The following table presents changes in the carrying amount of goodwill by reportable segment:


(in millions)	Intelligence & Digital		Health		Homeland		Defense		Total
Goodwill at January 3, 2025(1)	$	2,007	$	1,336	$	950	$	1,791	$	6,084
Acquisition of a business	231		—		—		—		231
Divestiture of a business	—		—		(7)		—		(7)
Foreign currency translation adjustments	—		—		34		—		34
Goodwill at January 2, 2026(1)	2,238		1,336		977		1,791		6,342
Acquisition of a business	—		—		1,652		—		1,652
Foreign currency translation adjustments	—		—		6		—		6
Transfers to assets held for sale	—		—		(337)		—		(337)
Goodwill at July 3, 2026	$	2,238	$	1,336	$	2,298	$	1,791	$	7,663

(1) Carrying amount includes accumulated impairment loss of $596 million within the Homeland segment, which is part of the SES Business discussed above.

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, 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.

In conjunction with the change in reportable segments in fiscal 2026, the Company evaluated goodwill for impairment immediately before and after the change and determined that goodwill was not impaired.

Intangible assets, net consisted of the following:


	July 3, 2026						January 2, 2026
(in millions)	Gross carrying value		Accumulated amortization		Net carrying value		Gross carrying value		Accumulated amortization		Net carrying value
Customer relationships	$	662	$	(37)	$	625	$	53	$	(34)	$	19
Programs	1,626		(1,359)		267		1,748		(1,391)		357
Backlog	55		(20)		35		12		(7)		5
Software and technology	93		(77)		16		264		(187)		77
Total intangible assets	$	2,436	$	(1,493)	$	943	$	2,077	$	(1,619)	$	458

Amortization expense was $40 million and $70 million for the three and six months ended July 3, 2026, respectively, and $32 million and $62 million for the three and six months ended July 4, 2025, respectively.