COVER
COVER - USD ($) | 12 Months Ended | ||
Dec. 30, 2022 | Feb. 17, 2023 | Jul. 01, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 30, 2022 | ||
Current Fiscal Year End Date | --12-30 | ||
Document Transition Report | false | ||
Entity File Number | 1-3863 | ||
Entity Registrant Name | L3HARRIS TECHNOLOGIES, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 34-0276860 | ||
Entity Address, Address Line One | 1025 West NASA Boulevard | ||
Entity Address, City or Town | Melbourne, | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 32919 | ||
City Area Code | 321 | ||
Local Phone Number | 727-9100 | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Trading Symbol | LHX | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 46,385,211,550 | ||
Entity Common Stock, Shares Outstanding | 190,089,405 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement for the 2023 Annual Meeting of Shareholders scheduled to be held on April 21, 2023, which will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 30, 2022, are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent described therein. | ||
Entity Central Index Key | 0000202058 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Dec. 30, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Orlando, Florida |
Auditor Firm ID | 42 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Revenue from product sales and services | |||
Revenue | $ 17,062 | $ 17,814 | $ 18,194 |
Cost of product sales and services | |||
Cost of revenue | (12,135) | (12,438) | (12,886) |
Engineering, selling and administrative expenses | (2,998) | (3,280) | (3,315) |
Business divestiture-related gains (losses), net | 0 | 220 | (51) |
Impairment of goodwill and other assets | (802) | (207) | (767) |
Non-operating income, net | 425 | 439 | 401 |
Net interest expense | (279) | (265) | (254) |
Income from continuing operations before income taxes | 1,273 | 2,283 | 1,322 |
Income taxes | (212) | (440) | (234) |
Income from continuing operations | 1,061 | 1,843 | 1,088 |
Discontinued operations, net of income taxes | 0 | (1) | (2) |
Net income | 1,061 | 1,842 | 1,086 |
Noncontrolling interests, net of income taxes | 1 | 4 | 33 |
Net income attributable to L3Harris Technologies, Inc. | 1,062 | 1,846 | 1,119 |
Amount attributable to L3Harris Technologies, Inc. common shareholders | |||
Income from continuing operations | 1,062 | 1,847 | 1,121 |
Discontinued operations, net of income taxes | 0 | (1) | (2) |
Net income attributable to L3Harris Technologies, Inc. | $ 1,062 | $ 1,846 | $ 1,119 |
Basic | |||
Continuing operations (in dollars per share) | $ 5.54 | $ 9.17 | $ 5.24 |
Discontinued operations (in dollars per share) | 0 | 0 | (0.01) |
Total basic net income per common share (in dollars per share) | 5.54 | 9.17 | 5.23 |
Diluted | |||
Diluted (in dollars per share) | $ 5.49 | $ 9.09 | $ 5.19 |
Product | |||
Revenue from product sales and services | |||
Revenue | $ 12,097 | $ 13,156 | $ 13,581 |
Cost of product sales and services | |||
Cost of revenue | (8,355) | (9,007) | (9,464) |
Services | |||
Revenue from product sales and services | |||
Revenue | 4,965 | 4,658 | 4,613 |
Cost of product sales and services | |||
Cost of revenue | $ (3,780) | $ (3,431) | $ (3,422) |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,061 | $ 1,842 | $ 1,086 |
Other comprehensive income: | |||
Foreign currency translation (loss) gain, net of income taxes | (119) | (63) | 16 |
Net unrealized loss on hedging derivatives, net of income taxes | (8) | (3) | (31) |
Net unrecognized (loss) gain on postretirement obligations, net of income taxes | (26) | 758 | (313) |
Other comprehensive (loss) income, recognized during the period | (153) | 692 | (328) |
Reclassification adjustments for losses (gains) included in net income | 11 | 1 | (3) |
Other comprehensive loss, net of income taxes | (142) | 693 | (331) |
Total comprehensive income | 919 | 2,535 | 755 |
Comprehensive loss attributable to noncontrolling interests | 1 | 4 | 33 |
Total comprehensive income attributable to L3Harris Technologies, Inc. | $ 920 | $ 2,539 | $ 788 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 880 | $ 941 |
Receivables, net | 1,251 | 1,045 |
Contract assets | 2,987 | 3,021 |
Inventories | 1,291 | 982 |
Income taxes receivable | 40 | 98 |
Other current assets | 258 | 272 |
Assets of business held for sale | 47 | 0 |
Total current assets | 6,754 | 6,359 |
Non-current Assets | ||
Property, plant and equipment, net | 2,104 | 2,101 |
Operating lease right-of-use assets | 756 | 769 |
Goodwill | 17,283 | 18,189 |
Other intangible assets, net | 6,001 | 6,640 |
Deferred income taxes | 73 | 85 |
Other non-current assets | 553 | 566 |
Total non-current assets | 26,770 | 28,350 |
Total assets | 33,524 | 34,709 |
Current Liabilities | ||
Short-term debt | 2 | 2 |
Accounts payable | 1,945 | 1,767 |
Contract liabilities | 1,400 | 1,297 |
Compensation and benefits | 398 | 444 |
Other accrued items | 818 | 1,002 |
Income taxes payable | 376 | 28 |
Current portion of long-term debt, net | 818 | 11 |
Liabilities of business held for sale | 19 | 0 |
Total current liabilities | 5,776 | 4,551 |
Non-current Liabilities | ||
Defined benefit plans | 262 | 614 |
Operating lease liabilities | 741 | 768 |
Long-term debt, net | 6,225 | 7,048 |
Deferred income taxes | 719 | 1,344 |
Other long-term liabilities | 1,177 | 1,065 |
Total non-current liabilities | 9,124 | 10,839 |
Shareholders’ Equity: | ||
Preferred stock, without par value; 1,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $1.00 par value; 500,000,000 shares authorized; issued and outstanding 190,611,458 and 193,511,401 shares at December 30, 2022 and December 31, 2021, respectively | 191 | 194 |
Other capital | 15,677 | 16,248 |
Retained earnings | 2,943 | 2,917 |
Accumulated other comprehensive loss | (288) | (146) |
Total shareholders’ equity | 18,523 | 19,213 |
Noncontrolling interests | 101 | 106 |
Total equity | 18,624 | 19,319 |
Total liabilities and equity | $ 33,524 | $ 34,709 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Dec. 30, 2022 | Dec. 31, 2021 |
Shareholders’ Equity: | ||
Preferred shares, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred shares, issued (in shares) | 0 | 0 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 |
Common shares, authorized (in shares) | 500,000,000 | 500,000,000 |
Common shares, issued (in shares) | 190,611,458 | 193,511,401 |
Common shares, outstanding (in shares) | 190,611,458 | 193,511,401 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Operating Activities | |||
Net income (loss) | $ 1,061 | $ 1,842 | $ 1,086 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of acquisition-related intangibles | 605 | 627 | 709 |
Depreciation and other amortization | 333 | 340 | 323 |
Share-based compensation | 109 | 129 | 94 |
Share-based matching contributions under defined contribution plans | 216 | 219 | 216 |
Pension and other postretirement benefit plan income | (395) | (375) | (321) |
Goodwill and asset impairment charges | 802 | 244 | 767 |
Business divestiture-related (gains) losses, net | 0 | (220) | 51 |
Loss (gain) on sale of property, plant and equipment | 6 | 0 | (22) |
Deferred income taxes | (596) | (114) | (215) |
(Increase) decrease in: | |||
Receivables, net | (210) | 217 | (250) |
Contract assets | 23 | (820) | (116) |
Inventories | (310) | (68) | 60 |
Prepaid expenses and other current assets | 13 | 23 | 57 |
Increase (decrease) in: | |||
Accounts payable | 180 | 430 | 173 |
Contract liabilities | 121 | 178 | 14 |
Compensation and benefits | (45) | (44) | 43 |
Other accrued items | (181) | 20 | 41 |
Income taxes | 499 | 190 | 61 |
Other | (73) | (131) | 19 |
Net cash provided by operating activities | 2,158 | 2,687 | 2,790 |
Investing Activities | |||
Additions to property, plant and equipment | (252) | (342) | (368) |
Proceeds from sale of property, plant and equipment, net | 14 | 7 | 91 |
Proceeds from sales of businesses, net | 5 | 1,729 | 1,040 |
Proceeds from sale of asset group, net | 18 | 10 | 0 |
Cash used for equity investments | (47) | (14) | (12) |
Other investing activities | 12 | 4 | 0 |
Net cash (used in) provided by investing activities | (250) | 1,394 | 751 |
Financing Activities | |||
Net proceeds from borrowings | 4 | 6 | 901 |
Repayments of borrowings | (14) | (13) | (931) |
Payments of interest rate derivative obligations | 0 | 0 | (113) |
Proceeds from exercises of employee stock options | 57 | 97 | 56 |
Repurchases of common stock | (1,083) | (3,675) | (2,290) |
Cash dividends | (864) | (817) | (725) |
Tax withholding payments associated with vested share-based awards | (45) | (5) | (4) |
Other financing activities | (6) | (6) | (6) |
Net cash used in financing activities | (1,951) | (4,413) | (3,112) |
Effect of exchange rate changes on cash and cash equivalents | (18) | (3) | 23 |
Net (decrease) increase in cash and cash equivalents | (61) | (335) | 452 |
Cash and cash equivalents, beginning of period | 941 | 1,276 | 824 |
Cash and cash equivalents, end of period | $ 880 | $ 941 | $ 1,276 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Millions | Total | Common Stock | Other Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests |
Beginning balance at Jan. 03, 2020 | $ 22,744 | $ 218 | $ 20,694 | $ 2,183 | $ (508) | $ 157 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 1,086 | 1,119 | (33) | |||
Other comprehensive income (loss) | (331) | (331) | ||||
Shares issued under stock incentive plans | 56 | 1 | 55 | |||
Shares issued under defined contribution plans | 216 | 1 | 215 | |||
Share-based compensation expense | 93 | 93 | ||||
Tax withholding payments on share-based awards | (4) | (4) | ||||
Repurchases and retirement of common stock | (2,290) | (12) | (2,046) | (232) | ||
Cash dividends | (725) | (725) | ||||
Other | (4) | 1 | 2 | (7) | ||
Ending balance at Jan. 01, 2021 | 20,841 | 208 | 19,008 | 2,347 | (839) | 117 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 1,842 | 1,846 | (4) | |||
Other comprehensive income (loss) | 693 | 693 | ||||
Shares issued under stock incentive plans | 97 | 1 | 96 | |||
Shares issued under defined contribution plans | 219 | 1 | 218 | |||
Share-based compensation expense | 129 | 129 | ||||
Tax withholding payments on share-based awards | (5) | (5) | ||||
Repurchases and retirement of common stock | (3,675) | (17) | (3,199) | (459) | ||
Cash dividends | (817) | (817) | ||||
Other | (5) | 1 | 1 | 0 | (7) | |
Ending balance at Dec. 31, 2021 | 19,319 | 194 | 16,248 | 2,917 | (146) | 106 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 1,061 | 1,062 | (1) | |||
Other comprehensive income (loss) | (142) | (142) | ||||
Shares issued under stock incentive plans | 57 | 1 | 56 | |||
Shares issued under defined contribution plans | 216 | 1 | 215 | |||
Share-based compensation expense | 109 | 109 | ||||
Tax withholding payments on share-based awards | (45) | (45) | ||||
Repurchases and retirement of common stock | (1,083) | (5) | (907) | (171) | ||
Cash dividends | (864) | (864) | ||||
Other | (4) | 1 | (1) | (4) | ||
Ending balance at Dec. 30, 2022 | $ 18,624 | $ 191 | $ 15,677 | $ 2,943 | $ (288) | $ 101 |
CONSOLIDATED STATEMENT OF EQU_2
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends (in dollars per share) | $ 4.48 | $ 4.08 | $ 3.40 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 30, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: SIGNIFICANT ACCOUNTING POLICIES Organization — L3Harris Technologies, Inc., together with its subsidiaries, is a Trusted Disruptor for the global aerospace and defense industry. With customers’ mission-critical needs in mind, we deliver end-to-end technology solutions connecting the space, air, land, sea and cyber domains. We support government and commercial customers in more than 100 countries, with our largest customers being various departments and agencies of the U.S. Government and their prime contractors. Our products, systems and services have defense and civil government applications, as well as commercial applications. As of December 30, 2022, we had approximately 46,000 employees, including approximately 20,000 engineers and scientists. Principles of Consolidation — Our Consolidated Financial Statements include the accounts of L3Harris Technologies, Inc. and its consolidated subsidiaries. As used in these Notes to the Consolidated Financial Statements, the terms “L3Harris,” “Company,” “we,” “our” and “us” refer to L3Harris Technologies, Inc. and its consolidated subsidiaries. Intracompany transactions and accounts have been eliminated. Amounts contained in this Report may not always add to totals due to rounding. Fiscal Year — Our fiscal year ends on the Friday nearest December 31. Fiscal 2022, fiscal 2021 and fiscal 2020 each included 52 weeks. Organizational Structure and Change in Accounting Policy — We implemented a new organizational structure effective January 1, 2022, resulting in changes to our operating segments, which are also our reportable segments and are referred to as our business segments. The new structure streamlined our business segments from four to three business segments. Our former Aviation Systems segment was eliminated as a business segment. We updated our business segment reporting and accounting policies for pension and OPEB income or expense to better align our presentation of business segment information with our industry peers. Our business segment operating results include pension and OPEB cost under CAS, as CAS pension and OPEB cost is allocable to and allowable under contracts with the U.S. Government. We no longer assign or allocate FAS pension and OPEB income or expense to our business segments. GAAP requires pension and OPEB income or expense to be recognized on a FAS basis. Therefore, we present a “FAS/CAS operating adjustment” outside of business segment results, representing the difference between the service cost component of FAS pension and OPEB income or expense and total CAS pension and OPEB cost or expense. Non-service cost components of FAS pension and OPEB income or expense are included as a component of the Non-operating income, net line item in our Consolidated Statement of Operations. During the quarter ended April 3, 2020, we adjusted our segment reporting to better align our businesses and transferred two businesses between our IMS and SAS segments. The historical results, discussion and presentation of our business segments as set forth in the accompanying Consolidated Financial Statements and these Notes reflect the impact of these changes for all periods presented in order to present segment information on a comparable basis. There is no impact on our previously reported consolidated statements of operations, balance sheets, statements of cash flows or statements of equity resulting from these changes. See Note 24: Business Segments in these Notes for information regarding our segment structure and pension presentation effective in fiscal 2022. Divestitures — See Note 4: Business Divestitures and Asset Sales in these Notes for information regarding the divestitures and other asset sales by us in fiscal 2022, 2021 and 2020. Use of Estimates — The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the accompanying Consolidated Financial Statements and these Notes and related disclosures. These estimates and assumptions are based on experience and other information available prior to issuance of the accompanying Consolidated Financial Statements and these Notes. Materially different results can occur as circumstances change and additional information becomes known. Reclassifications — The classification of certain prior year amounts have been adjusted in our Consolidated Financial Statements and these Notes to conform to current year classifications. Supplemental Cash Flow Information — Non-cash investing and financing activities during fiscal 2022 and 2021 included a $20 million and $120 million, respectively, right-of-use (“ROU”) asset we obtained in exchange for a corresponding finance lease liability. These non-cash investing and financing activities are excluded from the “Additions of property, plant and equipment” and “Net proceeds from borrowings” line items in our Consolidated Statement of Cash Flows. Right-of-use assets for finance leases are included in the “Property, plant and equipment, net” line item and the corresponding finance lease liabilities are included in the “Current portion of long-term debt, net” and “Long-term debt, net” line items in our Consolidated Balance Sheet. Non-cash investing and financing activities during fiscal 2022 and 2021 included a $123 million and $260 million right-of-use asset we obtained in exchange for a corresponding operating lease liability. These non-cash investing and financing activities are excluded from the “Other investing” and “Other financing” line items in our Consolidated Statement of Cash Flows. Right-of-use assets for operating leases are included in the “Operating lease right-of-use assets” line item and the corresponding operating lease liabilities are included in the “Other accrued items” and “Operating lease liabilities” line items in our Consolidated Balance Sheet. There were no material non-cash investing or financing activities during fiscal 2020. Cash and Cash Equivalents — Cash and cash equivalents include cash at banks and temporary cash investments with a maturity of three or fewer months when purchased. These investments include accrued interest and are carried at the lower of cost or market. Fair Value of Financial Instruments — The carrying amounts reflected in our Consolidated Balance Sheet for cash and cash equivalents, accounts receivable, non-current receivables, notes receivable, accounts payable, short-term debt and long-term variable-rate debt approximate their fair values. Fair values for long-term fixed-rate debt are primarily based on quoted market prices for those or similar instruments. See Note 13: Debt in these Notes for additional information regarding fair values for our long-term fixed-rate debt. A discussion of fair values for our derivative financial instruments is included under the caption “Financial Instruments and Risk Management” in this Note 1: Significant Accounting Policies. Fair Value Measurements — Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants at the measurement date. Entities are required to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value, and to utilize a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included within Level 1, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are observable or are derived principally from, or corroborated by, observable market data by correlation or other means. • Level 3 — Unobservable inputs that are supported by little or no market activity, are significant to the fair value of the assets or liabilities and reflect our own assumptions about the assumptions market participants would use in pricing the asset or liability developed using the best information available in the circumstances. In certain instances, fair value is estimated using quoted market prices obtained from external pricing services. In obtaining such data from the pricing service, we have evaluated the methodologies used to develop the estimate of fair value in order to assess whether such valuations are representative of fair value, including NAV. Additionally, in certain circumstances, the NAV reported by an asset manager may be adjusted when sufficient evidence indicates NAV is not representative of fair value. Accounts Receivable — We record receivables at net realizable value and they generally do not bear interest. This value includes an allowance for estimated uncollectible accounts to reflect any losses anticipated on the accounts receivable balances which is charged to the provision for doubtful accounts. We calculate this allowance at inception based on expected loss over the life of the receivable. We consider historical write-offs by customer, level of past due accounts and economic status of the customers. A receivable is considered delinquent if it is unpaid after the term of the related invoice has expired. Write-offs are recorded at the time a customer receivable is deemed uncollectible. See Note 5: Receivables, Net in these Notes for additional information regarding accounts receivable. Contract Assets and Liabilities — The timing of revenue recognition, customer billings and cash collections results in accounts receivable, contract assets and contract liabilities at the end of each reporting period. Contract assets include unbilled amounts typically resulting from revenue recognized exceeding amounts billed to customers for contracts utilizing the POC cost-to-cost revenue recognition method. We bill customers as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, upon achievement of contractual milestones or upon deliveries and, in certain arrangements, the customer may withhold payment of a portion of the contract price until contract completion. Contract liabilities include advance payments and billings in excess of revenue recognized, including deferred revenue. Contract assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period. The non-current portion of contract liabilities is included within the “Other long-term liabilities” line item in our Consolidated Balance Sheet. Contract assets related to amounts withheld by customers until contract completion are not considered a significant financing component of our contracts because the intent is to protect the customers from our failure to satisfactorily complete our performance obligations. Payments received from customers in advance of revenue recognition are not considered a significant financing component of our contracts because they are utilized to pay for contract costs within a one-year period or are requested by us to ensure the customers meet their payment obligations. See Note 6: Contract Assets and Contract Liabilities in these Notes for additional information. Inventories — Inventories are valued at the lower of cost (determined by average and first-in, first-out methods) or net realizable value. We regularly review inventory quantities on hand and record a provision for excess and obsolete inventory primarily based on our estimated forecast of product demand, anticipated end of product life and production requirements. See Note 7: Inventories in these Notes for additional information regarding inventories. Costs to Obtain or Fulfill a Contract — Costs to obtain a contract are incremental direct costs incurred to obtain a contract with a customer, including sales commissions and dealer fees, and are capitalized if material. Costs to fulfill a contract include costs directly related to a contract or a specific anticipated contract (for example, mobilization, set-up and certain design costs) that generate or enhance our ability to satisfy our performance obligations under these contracts. These costs are capitalized to the extent they are expected to be recovered from the associated contract. Capitalized costs to obtain or fulfill a contract are amortized to expense over the expected period of benefit for contracts with terms greater than one year on a systematic basis that is consistent with the pattern of transfer of the associated goods and services to the customer. As a practical expedient, capitalized costs to obtain or fulfill a contract with a term of one year or less are expensed as incurred. Capitalized costs to obtain or fulfill a contract included in the “Other current assets” and “Other non-current assets” line items in our Consolidated Balance Sheet were $16 million and $25 million, respectively, at December 30, 2022 and $11 million and $26 million, respectively, at December 31, 2021. Property, Plant and Equipment — Property, plant and equipment are carried on the basis of cost and include software capitalized for internal use. Depreciation of buildings, machinery and equipment is computed by the straight-line and accelerated methods. The estimated useful lives of buildings, including leasehold improvements, generally range between 2 and 45 years. The estimated useful lives of machinery and equipment generally range between 2 and 10 years. Amortization of internal-use software begins when the software is put into service and is based on the expected useful life of the software. The useful lives over which we amortize internal-use software generally range between 3 and 10 years. See Note 8: Property, Plant and Equipment, Net in these Notes for additional information regarding property, plant and equipment. Goodwill — We follow the acquisition method of accounting to record the assets and liabilities of acquired businesses at their estimated fair value at the date of acquisition. We initially record goodwill for the amount the consideration transferred exceeds the acquisition-date fair value of net identifiable assets acquired. We test goodwill for impairment at a level within the Company referred to as the reporting unit, which is our business segment level or one level below the business segment. We test our goodwill for impairment annually as of the first day of our fourth fiscal quarter, or under certain circumstances more frequently, such as when events or circumstances indicate there may be impairment. Such events or circumstances may include a significant deterioration in overall economic conditions, changes in the business climate of our industry, a decline in our market capitalization, operating performance indicators, competition, reorganizations of our business or the disposal of all or a portion of a reporting unit. To test goodwill for impairment, we may perform both qualitative and quantitative assessments. If we elect to perform a qualitative assessment for a certain reporting unit, we evaluate events and circumstances impacting the reporting unit to determine the probability that goodwill is impaired. If we perform a quantitative assessment for a certain reporting unit, we calculate the fair value of that reporting unit and compare the fair value to the reporting unit’s net book value. We estimate fair values of our reporting units based on projected cash flows, and sales and/or earnings multiples applied to the latest twelve months’ sales and earnings of our reporting units. Projected cash flows are based on our best estimate of future sales, operating costs and balance sheet metrics reflecting our view of the financial and market conditions of the underlying business; and the resulting cash flows are discounted using an appropriate discount rate that reflects the risk in the forecasted cash flows. The sales and earnings multiples applied to the sales and earnings of our reporting units are based on current multiples of sales and earnings for similar businesses, and based on sales and earnings multiples paid for recent acquisitions of similar businesses made in the marketplace. We then assess whether any implied control premium, based on a comparison of fair value based purely on our stock price and outstanding shares with fair value determined by using all of the above-described models, is reasonable. If we determine it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, we measure any loss from an impairment by comparing the fair value of each reporting unit to its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, goodwill is considered impaired, and an impairment loss is recognized in an amount equal to that excess. See Note 4: Business Divestitures and Asset Sales and Note 9: Goodwill in these Notes for additional information regarding goodwill. Long-Lived Assets, Including Intangible Assets — Long-lived assets, including finite-lived intangible assets, are amortized to expense over their useful lives either according to the underlying economic benefit as reflected by future net cash inflows or on a straight-line basis depending on the nature of the asset. We assess the recoverability of the carrying value of our long-lived assets, including finite-lived intangible assets, whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. We evaluate the recoverability of such assets based on the expectations of undiscounted cash flows from such assets. If the sum of the expected future undiscounted cash flows were less than the carrying amount of the asset, a loss would be recognized for the difference between the fair value and the carrying amount. Indefinite-lived intangible assets are not amortized, but are tested annually for impairment, or under certain circumstances more frequently, such as when events and circumstances indicate there may be an impairment. This testing compares the fair value of the asset to its carrying amount, and, when appropriate, the carrying amount of these assets is reduced to its fair value. See Note 8: Property, Plant and Equipment, Net and Note 10: Intangible Assets in these Notes for additional information regarding long-lived assets and intangible assets. Leases — We recognize ROU assets and lease liabilities in our Consolidated Balance Sheet for operating and finance leases under which we are the lessee. As a practical expedient, leases with a term of twelve months or less (including reasonably certain extension periods) and leases with expected lease payments of less than $250 thousand are expensed as incurred. Operating lease assets and finance lease assets are included in the “Operating lease right-of-use assets” and “Property, plant and equipment, net” line items, respectively, in our Consolidated Balance Sheet. Operating lease liabilities and finance lease liabilities for obligations due within twelve months are included in the “Other accrued items” line item in our Consolidated Balance Sheet. Operating lease liabilities and finance lease liabilities for obligations due longer than twelve months are included in the “Operating lease liabilities” and “Other long-term liabilities” line items, respectively, in our Consolidated Balance Sheet. ROU assets and lease liabilities are recognized based on the present value of future lease payments. Lease payments primarily include base rent. We have some lease payments that are based on an index and changes to the index are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred. Our lease payments also include non-lease components such as real estate taxes and common-area maintenance costs. As a practical expedient, we account for lease and non-lease components as a single component. For certain leases, the non-lease components are variable and are therefore excluded from lease payments to determine the ROU asset. The present value of future lease payments is determined using our incremental borrowing rate at lease commencement over the expected lease term. We use our incremental borrowing rate because our leases do not provide an implicit lease rate. The expected lease term represents the number of years we expect to lease the property, including options to extend or terminate the lease when it is reasonably certain that we will exercise the option. Operating lease expense is recognized as an operating cost on a straight-line basis over the expected lease term in our Consolidated Statement of Operations. For finance leases, the asset is amortized on a straight-line basis over the lease term, and interest on the lease liability is recognized in interest expense. We are a lessor for certain flight simulators and aircraft which meet the criteria for operating lease classification. Lease income associated with these leases was not material in fiscal 2022, 2021 or 2020. See Note 18: Lease Commitments in these Notes for additional information regarding leases. Other Assets and Liabilities — No assets within the “Other current assets” or “Other non-current assets” line items in our Consolidated Balance Sheet exceeded 5% of our total current assets or total assets, respectively, at December 30, 2022 or December 31, 2021. No accrued liabilities or expenses within the “Other accrued items” or “Other long-term liabilities” line items in our Consolidated Balance Sheet exceeded 5% of our total current liabilities or total liabilities, respectively, at December 30, 2022 or December 31, 2021. Income Taxes — We follow the asset and liability method of accounting for income taxes, required by ASC 740. We record deferred tax assets and liabilities for differences between the tax basis of assets and liabilities and amounts reported in our Consolidated Balance Sheet, as well as operating loss and tax credit carryforwards. We follow very specific and detailed guidelines in each tax jurisdiction regarding the recoverability of any tax assets recorded on the balance sheet and provide necessary valuation allowances as required. We regularly review our deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The implementation of a modified territorial tax system by the TCJA subjects us to tax on our Global Intangible Low-Taxed Income (“GILTI”) starting with fiscal 2019. The Financial Accounting Standards Board has permitted companies to make an accounting policy decision to either (1) treat taxes due on future GILTI inclusions in U.S. taxable income as a current-period expense when incurred (“period cost method”) or (2) factor such amounts into the measurement of its deferred taxes (“deferred method”). We have elected to use the period cost method. See Note 22: Income Taxes in these Notes for additional information regarding income taxes. Standard Warranties — We record estimated standard warranty costs in the period that control of the related products transfers to the customer. Factors that affect the estimated cost for warranties include the terms of the contract, the type and complexity of the delivered product, the number of installed units, historical experience and management’s assumptions regarding anticipated rates of warranty claims and cost per claim. Our standard warranties start from the shipment, delivery or customer acceptance date and continue as follows: Segment Average Warranty Period Integrated Mission Systems One Space & Airborne Systems One Communication Systems One Because our products are manufactured, in many cases, to customer specifications and their acceptance is based on meeting those specifications, we historically have experienced minimal warranty costs. Factors that affect our warranty liability include the number of installed units, historical experience, anticipated delays in delivery of products to end customers, in-country support for international sales and our assumptions regarding anticipated rates of warranty claims and cost per claim. We assess the adequacy of our recorded warranty liabilities every quarter and make adjustments to the liability as necessary. See Note 11: Accrued Warranties in these Notes for additional information regarding warranties. Foreign Currency Translation — The functional currency for most international subsidiaries is the local currency. Assets and liabilities are translated at current rates of exchange and income and expense items are translated at the weighted average exchange rate for the year. The resulting translation adjustments are recorded as a separate component of shareholders’ equity. Stock Options and Other Share-Based Compensation — We measure compensation cost for all share-based payments (including employee stock options) at fair value and recognize cost over the vesting period, with forfeitures recognized as they occur. It is our practice to issue shares when options are exercised. See Note 15: Stock Options and Other Share-Based Compensation in these Notes for additional information regarding share-based compensation. Revenue Recognition — We account for a contract when it has approval and commitment from all parties, the rights and payment terms of the parties can be identified, the contract has commercial substance and the collectability of the consideration, or transaction price, is probable. Our contracts are often subsequently modified to include changes in specifications, requirements or price that may create new or change existing enforceable rights and obligations. We do not account for contract modifications (including unexercised options) or follow-on contracts until they meet the requirements noted above to account for a contract. At the inception of each contract, we evaluate the promised goods and services to determine whether the contract should be accounted for as having one or more performance obligations. A performance obligation is a promise to transfer a distinct good or service to a customer and represents the unit of accounting for revenue recognition. A substantial majority of our revenue is derived from long-term development and production contracts involving the design, development, manufacture or modification of aerospace and defense products and related services according to the customers’ specifications. Due to the highly interdependent and interrelated nature of the underlying goods and services and the significant service of integration that we provide, which often result in the delivery of multiple units, we account for these contracts as one performance obligation. For contracts that include both development/production and follow-on support services (for example, operations and maintenance), we generally consider the follow-on services distinct in the context of the contract and account for them as separate performance obligations. Additionally, a significant amount of our revenue is derived from contracts to provide multiple distinct goods to a customer where the goods can readily be sold to other customers based on their commercial nature and, accordingly, these goods are accounted for as separate performance obligations. Shipping and handling costs incurred after control of a product has transferred to the customer (for example, in free on board shipping arrangements) are treated as fulfillment costs and, therefore, are not accounted for as separate performance obligations. Also, we record taxes collected from customers and remitted to governmental authorities on a net basis in that they are excluded from revenue. As noted above, our contracts are often subsequently modified to include changes in specifications, requirements or price. Depending on the nature of the modification, we consider whether to account for the modification as an adjustment to the existing contract or as a separate contract. Often, the deliverables in our contract modifications are not distinct from the existing contract due to the significant integration and interrelated tasks provided in the context of the contract. Therefore, such modifications are accounted for as if they are part of the existing contract, and we may be required to recognize a cumulative catch-up adjustment to revenue at the date of the contract modification. We determine the transaction price for each contract based on our best estimate of the consideration we expect to receive, which includes assumptions regarding variable consideration, such as award and incentive fees. These variable amounts are generally awarded upon achievement of certain negotiated performance metrics, program milestones or cost targets and can be based upon customer discretion. We include such estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. We estimate variable consideration primarily using the most likely amount method. For contracts with multiple performance obligations, we allocate the transaction price to each performance obligation based on the relative standalone selling price of the good or service underlying each performance obligation. The standalone selling price represents the amount for which we would sell the good or service to a customer on a standalone basis (i.e., not sold as a bundle with any other products or services). Our contracts with the U.S. Government, including foreign military sales contracts, are subject to the FAR and the prices of our contract deliverables are typically based on our estimated or actual costs plus a reasonable profit margin. As a result, the standalone selling prices of the goods and services in these contracts are typically equal to the selling prices stated in the contract, thereby eliminating the need to allocate (or reallocate) the transaction price to the multiple performance obligations. In our non-U.S. Government contracts, we also generally use the expected cost plus a reasonable profit margin approach to determine standalone selling price. In addition, we determine standalone selling price for certain contracts that are commercial in nature based on observable selling prices. We recognize revenue for each performance obligation when (or as) the performance obligation is satisfied by transferring control of the promised goods or services underlying the performance obligation to the customer. The transfer of control can occur over time or at a point in time. Point-in-Time Revenue Recognition: Our performance obligations are satisfied at a point in time unless they meet at least one of the following criteria, in which case they are satisfied over time: • The customer simultaneously receives and consumes the benefits provided by our performance as we perform; • Our performance creates or enhances an asset (for example, work in process) that the customer controls as the asset is created or enhanced; or • Our performance does not create an asset with an alternative use to us and we have an enforceable right to payment for performance completed to date. As noted above, a significant amount of our revenue is derived from contracts to provide multiple distinct goods to a customer that are commercial in nature and can readily be sold to other customers. These performance obligations do not meet any of the three criteria listed above to recognize revenue over time; therefore, we recognize revenue at a point in time, generally when the goods are received and accepted by the customer. Over-Time Revenue Recognition: For U.S. Government development and production contracts, there is a continuous transfer of control of the asset to the customer as it is being produced based on FAR clauses in the contract that provide the customer with lien rights to work in process and allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. This also typically applies to our contracts with prime contractors for U.S. Government development and production contracts, when the above-described FAR clauses are flowed down to us by the prime contractors. Our non-U.S. Government development and production contracts, including international |
ACCOUNTING CHANGES OR RECENT AC
ACCOUNTING CHANGES OR RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING CHANGES OR RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 2: ACCOUNTING CHANGES OR RECENT ACCOUNTING PRONOUNCEMENTS Accounting standards updates adopted and/or issued, but not effective until after December 30, 2022, are not expected to have a material effect on our Consolidated Financial Statements, and there have been no new accounting changes or recent accounting pronouncements which became effective during fiscal 2022 that materially impacted our Consolidated Financial Statements. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | NOTE 3: ACQUISITIONS Acquisition of TDL Product Line On October 3, 2022, we entered into a definitive agreement to acquire the TDL product line for a purchase price of approximately $1.96 billion, subject to customary adjustments. The acquisition was completed subsequent to fiscal 2022 year-end on January 3, 2023. We used third-party debt borrowings under the Term Loan 2025 to finance the acquisition. The purchase of the TDL product line will enhance our networking capability and provide immediate access to the ubiquitous Link 16 waveform, better positioning us to enable the DoD’s integrated architecture goal in JADC2. The TDL product line will be reported within our CS segment. Pending Acquisition of AJRD On December 17, 2022, we entered into a definitive agreement to acquire AJRD in an all-cash transaction of approximately $4.7 billion. AJRD is a provider of propulsion systems and energetics for tactical and strategic missiles, missile defense systems and hypersonic applications. AJRD also provides liquid-fuel engines and propulsion and power systems for in-space crew and cargo transports. Upon closure of the acquisition, we anticipate creating a new business segment. The acquisition is expected to close in fiscal 2023, pending required regulatory approvals and clearances and other customary closing conditions. |
BUSINESS DIVESTITURES AND ASSET
BUSINESS DIVESTITURES AND ASSET SALES | 12 Months Ended |
Dec. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
BUSINESS DIVESTITURES AND ASSET SALES | NOTE 4: BUSINESS DIVESTITURES AND ASSET SALES Completed Divestitures and Asset Sales — Fiscal 2022 During fiscal 2022, we completed the divestiture of our Space & Navigation business and asset sale of CyTerra, both from our IMS business segment for combined net cash proceeds of $23 million and recognized a pre-tax gain of $8 million associated with the asset sale included in the “Engineering, selling and administrative expenses” line of our Consolidated Statement of Operations for fiscal 2022. Completed Divestitures and Asset Sales — Fiscal 2021 and Fiscal 2020 The following table presents information regarding business divestitures completed during fiscal 2021 and fiscal 2020: (In millions) Business Segment (1) Date of Divestiture Sale Price Net Cash Proceeds (2) Fiscal 2021 Narda-MITEQ business (3) Other non-reportable businesses (12) December 6, 2021 $ 75 $ 76 ESSCO business (4) Other non-reportable businesses (12) November 26, 2021 55 53 Electron Devices business (5) Other non-reportable businesses (12) October 1, 2021 185 173 VSE disposal group (6) Other non-reportable businesses (12) July 30, 2021 20 19 CPS business (7) Other non-reportable businesses (12) July 2, 2021 398 347 Military training business (8) Other non-reportable businesses (12) July 2, 2021 1,050 1,059 $ 1,783 $ 1,727 Fiscal 2020 EOTech business (9) Communication Systems July 31, 2020 $ 42 $ 40 Applied Kilovolts business (10) Space & Airborne Systems May 15, 2020 12 12 Airport security and automation business (11) Other non-reportable businesses (12) May 4, 2020 1,000 987 $ 1,054 $ 1,039 _______________ (1) Business segment in which the operating results of each divested business was reported through the date of divestiture. (2) Net cash proceeds after selling costs and purchase price adjustments. (3) The Narda-MITEQ business manufactured component, SATCOM and radio frequency safety products for both military and commercial markets. (4) The ESSCO business manufactured metal space frame ground radomes and composite structures. (5) The Electron Devices and Narda Microwave-West divisions (“Electron Devices business”) manufactured microwave devices for ground-based, airborne and SATCOM and radar. (6) The VSE disposal group provided voice over internet protocol systems for air traffic management communications. (7) The CPS business engineered, designed and manufactured engines, transmissions, suspensions and turret drive systems for tracked and wheeled combat vehicle systems. (8) The military training business provided flight simulation solutions and training services to the DoD and foreign military agencies. (9) The EOTech business manufactured holographic sighting systems, magnified field optics and accessories for military, law enforcement and commercial markets around the world. (10) The Applied Kilovolts and Analytical Instrumentation business (“Applied Kilovolts business”) manufactured high-voltage power supplies and ion detectors for customers in fields such as biotechnology, materials science, healthcare, forensics, environmental sciences and homeland security. (11) The Security & Detection Systems and MacDonald Humfrey Automation solutions business (“airport security and automation business”) provided solutions used by the aviation and transportation industries, regulatory and customs authorities, government and law enforcement agencies and commercial and other high-security facilities. (12) Formerly our Aviation Systems segment. Assets and Liabilities Held for Sale On December 21, 2022, we entered into a definitive agreement to sell our VIS business for $70 million, subject to customary purchase price adjustments and closing conditions as set forth in the definitive agreement. VIS, which is part of our SAS segment, provides commercial geospatial software, technology and services used to extract and analyze reliable, accurate and actionable information from geospatial to terrestrial imagery. The transaction is expected to close mid-fiscal 2023, subject to regulatory approvals. The carrying amounts of the assets and liabilities of the VIS business classified as held for sale in our Consolidated Balance Sheet as of December 30, 2022 were $47 million and $19 million, respectively. Assets at December 30, 2022 consisted primarily of $30 million and $10 million in goodwill and intangible assets, respectively. See Note 9: Goodwill in these Notes for additional information. There were no assets or liabilities classified as held for sale at December 31, 2021. Income Before Income Taxes Attributable to Businesses Divested There was no significant income before income taxes attributable to our Space & Navigation business divested during fiscal 2022. In fiscal 2021 and fiscal 2020, we had the following significant income before income taxes attributable to businesses divested in our Consolidated Statement of Operations: Fiscal Year Ended (In millions) December 31, 2021 January 1, 2021 Electron Devices business $ 44 $ 33 CPS business 53 62 Military training business 35 84 Business Divestiture-Related Gains (Losses), net In fiscal 2022, there were no significant business divestiture-related gains or losses. In fiscal 2021 and fiscal 2020, we had the following pre-tax gains (losses) associated with businesses divested, which are included in the “Business divestiture-related gains (losses), net” line item in our Consolidated Statement of Operations: Fiscal Year Ended (In millions) December 31, 2021 January 1, 2021 Narda-MITEQ business $ (9) $ — ESSCO business 31 — Electron Devices business 31 — VSE disposal group (1) (29) (18) CPS business (2) (19) — Military training business 217 — EOTech — 2 Airport security and automation business — (23) Other (3) (2) (12) Total Business divestiture-related gains (losses), net $ 220 $ (51) _______________ (1) During the quarter ended July 3, 2020, upon classifying the VSE disposal group as held for sale, we recorded a non-cash impairment charge of $14 million, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2020. We recognized an $18 million non-cash remeasurement loss related to the VSE disposal group during fiscal 2020. (2) During the quarter ended April 2, 2021, upon classifying the CPS business as held for sale, we recorded a non-cash impairment charge of $62 million, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2021. See Note 9: Goodwill in these Notes for additional information. (3) Reflects adjustments to the gains and losses on completed divestitures not shown above, including for fiscal 2020, $12 million for finalization of purchase price adjustments and recognition of a non-cash adjustment related to working capital, which decreased the $229 million gain initially recognized on the sale of the Harris Night Vision business divested on September 13, 2019. Fair Value of Businesses and Goodwill Allocation For purposes of allocating goodwill to the disposal groups that represented a portion of a reporting unit, we determine the fair value of each disposal group based on the respective negotiated selling price (or estimated net cash proceeds, in the case of no negotiated selling price), and the fair value of the retained businesses of the respective reporting unit based on a combination of market-based valuation techniques, utilizing quoted market prices, comparable publicly reported transactions and projected discounted cash flows. These fair value determinations are categorized as Level 3 in the fair value hierarchy due to their use of internal projections and unobservable measurement inputs. See Note 1: Significant Accounting Policies in these Notes for additional information regarding the fair value hierarchy and see Note 9: Goodwill in these Notes for additional information regarding the impairment of goodwill related to our business divestitures. |
RECEIVABLES, NET
RECEIVABLES, NET | 12 Months Ended |
Dec. 30, 2022 | |
Receivables [Abstract] | |
RECEIVABLES, NET | NOTE 5: RECEIVABLES, NET Receivables, net are summarized below: (In millions) December 30, 2022 December 31, 2021 Accounts receivable $ 1,291 $ 1,088 Less: allowances for collection losses (40) (43) Receivables, net $ 1,251 $ 1,045 We have two RSAs with two separate third-party financial institutions that permit us to sell, on a non-recourse basis, up to $100 million each of outstanding receivables at any given time. From time to time, we have sold certain customer receivables under the RSAs, which we continue to service and collect on behalf of the third-party financial institutions and which we account for as sales of receivables with sale proceeds included in net cash from operating activities. We did not have outstanding accounts receivable sold pursuant to the RSAs at December 30, 2022. Outstanding accounts receivable sold pursuant to the RSAs were $99.9 million at December 31, 2021, for net cash proceeds of $99.8 million. |
CONTRACT ASSETS AND CONTRACT LI
CONTRACT ASSETS AND CONTRACT LIABILITIES | 12 Months Ended |
Dec. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
CONTRACT ASSETS AND CONTRACT LIABILITIES | NOTE 6: CONTRACT ASSETS AND CONTRACT LIABILITIES Contract assets include unbilled amounts typically resulting from revenue recognized exceeding amounts billed to customers for contracts utilizing the POC cost-to-cost revenue recognition method. We bill customers as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, upon achievement of contractual milestones or upon deliveries and, in certain arrangements, the customer may withhold payment of a small portion of the contract price until contract completion. Contract liabilities include advance payments and billings in excess of revenue recognized, including deferred revenue associated with extended product warranties. Contract assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period. Contract assets and liabilities in fiscal 2022 were impacted primarily by the timing of contractual billing milestones. Contract assets and contract liabilities are summarized below: (In millions) December 30, 2022 December 31, 2021 Contract assets $ 2,987 $ 3,021 Contract liabilities, current (1,400) (1,297) Contract liabilities, non-current (1) (117) (107) Net contract assets $ 1,470 $ 1,617 _______________ (1) The non-current portion of contract liabilities is included as a component of the “Other long-term liabilities” line item in our Consolidated Balance Sheet. The components of contract assets are summarized below: (In millions) December 30, 2022 December 31, 2021 Unbilled contract receivables, gross $ 4,629 $ 4,921 Unliquidated progress payments and advances (1,642) (1,900) Contract assets $ 2,987 $ 3,021 In fiscal 2022, 2021 and 2020, we recognized $1,057 million, $930 million and $974 million, respectively , NOTE 23: BACKLOG Backlog, which is the equivalent of our remaining performance obligations, represents the future revenue we expect to recognize as we perform on our current contracts. Backlog comprises both funded backlog (i.e., firm orders for which funding is authorized and appropriated) and unfunded backlog. Backlog excludes unexercised contract options and potential orders under ordering-type contracts, such as IDIQ contracts. At December 30, 2022, our ending backlog was $22.3 billion. We expect to recognize approximately 55% of the revenue associated with this backlog by the end of 2023 and approximately 75% by the end of 2024, with the remainder to be recognized thereafter. At December 31, 2021, our ending backlog was $21.1 billion. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 7: INVENTORIES Inventories are summarized below: (In millions) December 30, 2022 December 31, 2021 Finished products $ 181 $ 141 Work in process 396 335 Materials and supplies 714 506 Inventories $ 1,291 $ 982 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 8: PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net are summarized below: (In millions) December 30, 2022 December 31, 2021 Land $ 78 $ 79 Software capitalized for internal use 686 576 Buildings 1,251 1,236 Machinery and equipment 2,322 2,177 4,337 4,068 Less: accumulated depreciation and amortization (2,233) (1,967) Property, plant and equipment, net $ 2,104 $ 2,101 Depreciation and amortization expense related to property, plant and equipment was $342 million, $343 million and $318 million in fiscal 2022, 2021 and 2020, respectively. CTS Impairment - Fiscal 2021 In fiscal 2021, as discussed in more detail in Note 10: Intangible Assets in these Notes, in conjunction with, and in advance of, the tests of goodwill related to our CTS reporting unit, we recorded an $82 million non-cash impairment charge for long-lived assets, consisting of $19 million, $56 million and $7 million of impairment charges for right-of-use assets, property, plant and equipment and marketable software, respectively, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2021. Commercial Aviation Solutions Impairment - Fiscal 2020 In fiscal 2020, as discussed in more detail in Note 9: Goodwill and Note 10: Intangible Assets in these Notes, in conjunction with, and in advance of, the tests of goodwill related to our Commercial Aviation Solutions reporting unit, we recorded a $257 million non-cash impairment charge for long-lived assets, including a $103 million impairment charge for property, plant and equipment, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2020. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 9: GOODWILL The assignment of goodwill and changes in the carrying amount of goodwill, by business segment, for fiscal 2022 and 2021 were as follows: (In millions) Integrated Mission Systems Space & Airborne Systems Communication Systems Aviation Systems (2) Total Balance at January 1, 2021 $ 6,499 $ 5,232 $ 4,153 $ 2,992 $ 18,876 Goodwill decrease from divestitures (1) — — — (564) (564) Impairment of goodwill — — — (62) (62) Currency translation adjustments (14) (30) — (17) (61) Balance at December 31, 2021 - As Reported 6,485 5,202 4,153 2,349 18,189 Reallocation of goodwill in segment reorganization (2) 1,702 647 — (2,349) — Balance at December 31, 2021 - After Reallocation 8,187 5,849 4,153 — 18,189 Assets of business held for sale (1) — (30) — — (30) Impairment of goodwill (447) — (355) — (802) Currency translation adjustments (31) (41) (2) — (74) Balance at December 30, 2022 $ 7,709 $ 5,778 $ 3,796 $ — $ 17,283 _______________ (1) During fiscal 2022, we assigned $30 million of goodwill associated with the pending VIS business divestiture to “Assets of business held for sale ” in our Consolidated Balance Sheet. During fiscal 2021, we completed the divestiture of six businesses (Narda-MITEQ business, ESSCO business, CPS business, military training business, Electron Devices business and VSE disposal group) and derecognized $564 million of goodwill as part of determining the gain or loss on the sales of these businesses. See Note 4: Business Divestitures and Asset Sales in these Notes for additional information regarding completed divestitures and businesses held for sale. (2) As a result of our new organizational structure effective January 1, 2022, streamlining our operations from four business segments to three business segments, we reallocated goodwill previously held by our former Aviation Systems segment to our remaining business segments as of January 1, 2021, the earliest period presented in these Notes. See additional information below and “Organizational Structure and Change in Accounting Policy” in Note 1: Significant Accounting Policies in these Notes. New Organizational Structure Effective January 1, 2022, we implemented a new organizational structure resulting in changes to our operating segments (which are also our reportable segments and are referred to as our business segments) and reporting units (which are our business segments or one level below our business segments). Implementing the new structure reduced our business segments, from four to three, and our reporting units from eleven to nine. As a result, we reassigned goodwill to our new reporting unit structure on a relative fair value basis, tested goodwill related to impacted reporting units immediately before and after the reassignment and determined that no impairment existed. Precision Engagement Business Allocation and Impairment — Fiscal 2022 During the quarter ended September 30, 2022, we realigned our precision engagement business from our ADG reporting unit to our Electro Optical reporting unit. In connection with the realignment, we transferred $325 million of goodwill associated with the precision engagement business to our Electro Optical reporting unit on a relative fair value basis. Immediately before and after the reassignment, we tested goodwill assigned to each reporting unit. As a result of these tests, concurrently with the preparation of our financial statements for the quarter ended September 30, 2022, we concluded that goodwill related to our ADG reporting unit was impaired immediately before the reassignment and recorded a non-cash charge of $313 million for the impairment in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations. The impairment of goodwill was due to lower sales volume in our precision engagement business, reflecting U.S. Government spending priorities with respect to precision weapons, and higher interest rates. ADG and Electro Optical are both part of our IMS segment. We prepared an estimate of the fair value of our precision engagement business based on a combination of market-based valuation techniques, utilizing quoted market prices, comparable publicly reported transactions and projected discounted cash flows. Broadband, Electro Optical and ADG Interim Impairment Testing — Fiscal 2022 Indications of potential impairment of goodwill related to our Broadband, Electro Optical and ADG reporting units were present as of September 30, 2022. Consequently, in connection with the preparation of our financial statements for the quarter ended September 30, 2022, we performed interim impairment tests for each of these reporting units based on a combination of market-based valuation techniques, utilizing quoted market prices and comparable publicly reported transactions and projected discounted cash flows. We determined goodwill related to our Broadband and Electro Optical reporting units was impaired and goodwill related to our ADG reporting unit was not impaired as of September 30, 2022. As a result, we recorded $489 million of non-cash charges for the impairment of goodwill ($355 million and $134 million for Broadband and Electro Optical, respectively) in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations. Broadband is part of our CS segment (as noted above, Electro Optical is part of our IMS segment). The impairment of goodwill related to our Electro Optical reporting unit was due to persistently lower demand in the precision engagement business and an associated decrease in our outlook for the business, as well as rising interest rates. The impairment of goodwill related to our Broadband reporting unit was due to lower volume on legacy platforms, which also resulted in a decrease in our outlook for the reporting unit, and higher interest rates. CPS Business Impairment — Fiscal 2021 During the quarter ended April 2, 2021, we determined the criteria to be classified as held for sale were met with respect to the CPS business within our Aviation Systems segment and assigned $174 million of goodwill to the disposal group on a relative fair value basis. In connection with the preparation of our financial statements for the quarter ended April 2, 2021, we concluded that goodwill related to the CPS business was impaired and we recorded a non-cash impairment charge of $62 million, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2021. See Note 4: Business Divestitures and Asset Sales in these Notes for additional information. Commercial Aviation Solutions Impairments — Fiscal 2020 Indications of potential impairment of goodwill related to our Commercial Aviation Solutions reporting unit (which is part of our former Aviation Systems segment) were present at April 3, 2020 due to COVID and its impact on global air traffic and customer operations, resulting in a decrease in fiscal 2020 outlook for the reporting unit, which we considered to be a triggering event requiring an interim impairment test. Consequently, in connection with the preparation of our financial statements for the quarter ended April 3, 2020, we performed a quantitative impairment test. To test for potential impairment of goodwill related to our Commercial Aviation Solutions reporting unit, we prepared an estimate of the fair value of the reporting unit based on a combination of market-based valuation techniques, utilizing quoted market prices, comparable publicly reported transactions and projected discounted cash flows. Given the level of uncertainty in the outlook for the commercial aviation industry caused by the impact of COVID on global air traffic, our methodology for determining the fair value of the reporting unit placed the greatest weight on the expected fair value technique, and was dependent on our best estimates of future sales, operating costs and balance sheet metrics under a range of scenarios for future economic conditions. We assigned a probability to each scenario to calculate a set of probability-weighted projected cash flows, and an appropriate discount rate reflecting the risk in the projected cash flows was used to discount the expected cash flows to present value. As adverse global economic and market conditions attributable to COVID, including projected declines and subsequent recovery in commercial air traffic and original equipment manufacturer production volumes, continued to develop during fiscal 2020, we continued to monitor for facts and circumstances that could negatively impact key valuation assumptions in determining the fair value of our Commercial Aviation Solutions reporting unit, including recent valuations, expectations regarding the timing of a return to pre-COVID commercial flight activity and the associated level of uncertainty, long-term revenue and profitability projections, discount rates and general industry, market and macroeconomic conditions. As a result, we determined indications of further impairment of assets related to our Commercial Aviation Solutions reporting unit existed as of July 3, 2020 and again as of early December 2020. As a result of these impairment tests, we concluded that goodwill and other assets related to our Commercial Aviation Solutions reporting unit were impaired as of April 3, 2020, July 3, 2020 and January 1, 2021, and we recorded the following non-cash impairment charges: • $461 million (including $34 million attributable to noncontrolling interests) for impairment of goodwill during fiscal 2020, including $111 million recognized in the fourth quarter of fiscal 2020; and • $257 million for impairment of long-lived assets Note 10: Intangible Assets in these Notes for additional information), $103 million for property, plant and equipment (see Note 8: Property, Plant and Equipment, Net in these Notes for additional information), $31 million for ROU assets (see Note 18: Lease Commitments in these Notes for additional information) and $10 million for marketable software. These charges are included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2020 and are primarily not deductible for tax purposes. Applied Kilovolts Business Impairment — Fiscal 2020 During the quarter ended April 3, 2020, we determined the criteria to be classified as held for sale were met with respect to the Applied Kilovolts business within our SAS segment and assigned $6 million of goodwill to the Applied Kilovolts business on a relative fair value basis. In connection with the preparation of our financial statements for the quarter ended April 3, 2020, we concluded that goodwill related to the Applied Kilovolts business was impaired and recorded a non-cash impairment charge of $5 million, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2020. VSE Disposal Group Impairment — Fiscal 2020 During the quarter ended July 3, 2020, we determined the criteria to be classified as held for sale were met with respect to the VSE disposal group within our Aviation Systems segment and assigned $14 million of goodwill to the VSE disposal group on a relative fair value basis. In connection with the preparation of our financial statements for the quarter ended July 3, 2020, we concluded that goodwill related to the VSE disposal group was impaired and recorded a non-cash impairment charge $14 million, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2020. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 10: INTANGIBLE ASSETS, NET The most significant identifiable intangible asset that is separately recognized for our business combinations is customer relationships. Our customer relationships are established through written customer contracts (i.e., revenue arrangements). The fair value for customer relationships is determined, as of the date of acquisition, based on estimates and judgments regarding expectations for the estimated future after-tax earnings and cash flows arising from the follow-on sales expected from the customer relationships over the estimated lives, including the probability of expected future contract renewals and sales, less a contributory assets charge, all of which is discounted to present value. We assess the recoverability of the carrying value of our finite-lived identifiable intangible assets whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. We assess the recoverability of the carrying value of indefinite-lived identifiable intangible assets annually, or under certain circumstances more frequently, such as when events and circumstances indicate there may be an impairment. Identifiable intangible assets, net are summarized below: December 30, 2022 December 31, 2021 (In millions) Gross Carrying Accumulated Net Carrying Amount (1) Gross Carrying Accumulated Net Carrying Amount (1) Customer relationships $ 6,124 $ 2,189 $ 3,935 $ 6,194 $ 1,708 $ 4,486 Developed technologies 566 366 200 600 322 278 Contract backlog 1 1 — 13 13 — Trade names — divisions 95 53 42 108 56 52 Other 2 2 — 3 3 — Total finite-lived identifiable intangible assets 6,788 2,611 4,177 6,918 2,102 4,816 In-process research and development 21 — 21 21 — 21 Trade names — corporate 1,803 — 1,803 1,803 — 1,803 Total identifiable intangible assets, net $ 8,612 $ 2,611 $ 6,001 $ 8,742 $ 2,102 $ 6,640 _______________ (1) During fiscal 2022, we assigned $10 million of intangible assets associated with the pending VIS business divestiture to “Assets of business held for sale” in our Consolidated Balance Sheet. During fiscal 2021, we completed the divestiture of six businesses and derecognized $577 million of intangible assets as part of the gain or loss on these divestitures. See Note 4: Business Divestitures and Asset Sales in these Notes for additional information regarding divestitures and businesses held for sale. Amortization expense for identifiable finite-lived intangible assets was $605 million, $627 million and $729 million in fiscal 2022, 2021 and 2020, respectively, and primarily related to assets acquired in connection with business combinations. Future estimated amortization expense for identifiable intangible assets is as follows: (In millions) 2023 $ 594 2024 557 2025 511 2026 456 2027 414 Thereafter 1,645 Total $ 4,177 CTS Impairment — Fiscal 2021 During the quarter ended July 2, 2021, we adjusted our Aviation Systems segment reporting to better align our businesses and separated the CTS business from our Commercial Aviation Solutions reporting unit, creating a new reporting unit within the Commercial Aviation Solutions sector of our Aviation Systems segment. Immediately before and after our goodwill assignments, we completed an assessment of any potential goodwill impairment under our former and new reporting unit structure and determined that no impairment existed. To test for potential impairment of the long-lived assets, including identifiable intangible assets and property, plant and equipment, related to CTS, we compared the estimated future cash flows (on an undiscounted basis) to be generated from the use and hypothetical eventual disposition of the asset group to its carrying value and, as a result, we determined the carrying value of the CTS asset group was not recoverable. Next, we prepared an estimate of the fair value of CTS based on a combination of market-based valuation techniques, utilizing quoted market prices, comparable publicly reported transactions and projected discounted cash flows. We compared the fair value of CTS to our carrying value and recorded a $145 million non-cash charge for the impairment of CTS long-lived assets, including $63 million for impairment of identifiable intangible assets, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2021. Commercial Aviation Solutions Impairment — Fiscal 2020 During the fiscal year ended January 1, 2021, in conjunction with, and in advance of, the tests of goodwill related to our Commercial Aviation Solutions reporting unit, we also performed recoverability tests of the long-lived assets of our Commercial Aviation Solutions reporting unit, including identifiable intangible assets and property, plant and equipment. To test these long-lived assets for recoverability, we compared the estimated future cash flows (on an undiscounted basis) to be generated from the use and hypothetical eventual disposition of the asset group to its carrying value. As a result, we concluded that the long-lived assets of our Commercial Aviation Solutions reporting unit were impaired as of January 1, 2021 and we recorded a $257 million non-cash impairment charge Note 9: Goodwill in these Notes for additional information regarding Commercial Aviation Solutions impairments during fiscal 2020. |
INTANGIBLE ASSETS, NET_2
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 10: INTANGIBLE ASSETS, NET The most significant identifiable intangible asset that is separately recognized for our business combinations is customer relationships. Our customer relationships are established through written customer contracts (i.e., revenue arrangements). The fair value for customer relationships is determined, as of the date of acquisition, based on estimates and judgments regarding expectations for the estimated future after-tax earnings and cash flows arising from the follow-on sales expected from the customer relationships over the estimated lives, including the probability of expected future contract renewals and sales, less a contributory assets charge, all of which is discounted to present value. We assess the recoverability of the carrying value of our finite-lived identifiable intangible assets whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. We assess the recoverability of the carrying value of indefinite-lived identifiable intangible assets annually, or under certain circumstances more frequently, such as when events and circumstances indicate there may be an impairment. Identifiable intangible assets, net are summarized below: December 30, 2022 December 31, 2021 (In millions) Gross Carrying Accumulated Net Carrying Amount (1) Gross Carrying Accumulated Net Carrying Amount (1) Customer relationships $ 6,124 $ 2,189 $ 3,935 $ 6,194 $ 1,708 $ 4,486 Developed technologies 566 366 200 600 322 278 Contract backlog 1 1 — 13 13 — Trade names — divisions 95 53 42 108 56 52 Other 2 2 — 3 3 — Total finite-lived identifiable intangible assets 6,788 2,611 4,177 6,918 2,102 4,816 In-process research and development 21 — 21 21 — 21 Trade names — corporate 1,803 — 1,803 1,803 — 1,803 Total identifiable intangible assets, net $ 8,612 $ 2,611 $ 6,001 $ 8,742 $ 2,102 $ 6,640 _______________ (1) During fiscal 2022, we assigned $10 million of intangible assets associated with the pending VIS business divestiture to “Assets of business held for sale” in our Consolidated Balance Sheet. During fiscal 2021, we completed the divestiture of six businesses and derecognized $577 million of intangible assets as part of the gain or loss on these divestitures. See Note 4: Business Divestitures and Asset Sales in these Notes for additional information regarding divestitures and businesses held for sale. Amortization expense for identifiable finite-lived intangible assets was $605 million, $627 million and $729 million in fiscal 2022, 2021 and 2020, respectively, and primarily related to assets acquired in connection with business combinations. Future estimated amortization expense for identifiable intangible assets is as follows: (In millions) 2023 $ 594 2024 557 2025 511 2026 456 2027 414 Thereafter 1,645 Total $ 4,177 CTS Impairment — Fiscal 2021 During the quarter ended July 2, 2021, we adjusted our Aviation Systems segment reporting to better align our businesses and separated the CTS business from our Commercial Aviation Solutions reporting unit, creating a new reporting unit within the Commercial Aviation Solutions sector of our Aviation Systems segment. Immediately before and after our goodwill assignments, we completed an assessment of any potential goodwill impairment under our former and new reporting unit structure and determined that no impairment existed. To test for potential impairment of the long-lived assets, including identifiable intangible assets and property, plant and equipment, related to CTS, we compared the estimated future cash flows (on an undiscounted basis) to be generated from the use and hypothetical eventual disposition of the asset group to its carrying value and, as a result, we determined the carrying value of the CTS asset group was not recoverable. Next, we prepared an estimate of the fair value of CTS based on a combination of market-based valuation techniques, utilizing quoted market prices, comparable publicly reported transactions and projected discounted cash flows. We compared the fair value of CTS to our carrying value and recorded a $145 million non-cash charge for the impairment of CTS long-lived assets, including $63 million for impairment of identifiable intangible assets, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2021. Commercial Aviation Solutions Impairment — Fiscal 2020 During the fiscal year ended January 1, 2021, in conjunction with, and in advance of, the tests of goodwill related to our Commercial Aviation Solutions reporting unit, we also performed recoverability tests of the long-lived assets of our Commercial Aviation Solutions reporting unit, including identifiable intangible assets and property, plant and equipment. To test these long-lived assets for recoverability, we compared the estimated future cash flows (on an undiscounted basis) to be generated from the use and hypothetical eventual disposition of the asset group to its carrying value. As a result, we concluded that the long-lived assets of our Commercial Aviation Solutions reporting unit were impaired as of January 1, 2021 and we recorded a $257 million non-cash impairment charge Note 9: Goodwill in these Notes for additional information regarding Commercial Aviation Solutions impairments during fiscal 2020. |
INTANGIBLE ASSETS, NET_2_3
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 10: INTANGIBLE ASSETS, NET The most significant identifiable intangible asset that is separately recognized for our business combinations is customer relationships. Our customer relationships are established through written customer contracts (i.e., revenue arrangements). The fair value for customer relationships is determined, as of the date of acquisition, based on estimates and judgments regarding expectations for the estimated future after-tax earnings and cash flows arising from the follow-on sales expected from the customer relationships over the estimated lives, including the probability of expected future contract renewals and sales, less a contributory assets charge, all of which is discounted to present value. We assess the recoverability of the carrying value of our finite-lived identifiable intangible assets whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. We assess the recoverability of the carrying value of indefinite-lived identifiable intangible assets annually, or under certain circumstances more frequently, such as when events and circumstances indicate there may be an impairment. Identifiable intangible assets, net are summarized below: December 30, 2022 December 31, 2021 (In millions) Gross Carrying Accumulated Net Carrying Amount (1) Gross Carrying Accumulated Net Carrying Amount (1) Customer relationships $ 6,124 $ 2,189 $ 3,935 $ 6,194 $ 1,708 $ 4,486 Developed technologies 566 366 200 600 322 278 Contract backlog 1 1 — 13 13 — Trade names — divisions 95 53 42 108 56 52 Other 2 2 — 3 3 — Total finite-lived identifiable intangible assets 6,788 2,611 4,177 6,918 2,102 4,816 In-process research and development 21 — 21 21 — 21 Trade names — corporate 1,803 — 1,803 1,803 — 1,803 Total identifiable intangible assets, net $ 8,612 $ 2,611 $ 6,001 $ 8,742 $ 2,102 $ 6,640 _______________ (1) During fiscal 2022, we assigned $10 million of intangible assets associated with the pending VIS business divestiture to “Assets of business held for sale” in our Consolidated Balance Sheet. During fiscal 2021, we completed the divestiture of six businesses and derecognized $577 million of intangible assets as part of the gain or loss on these divestitures. See Note 4: Business Divestitures and Asset Sales in these Notes for additional information regarding divestitures and businesses held for sale. Amortization expense for identifiable finite-lived intangible assets was $605 million, $627 million and $729 million in fiscal 2022, 2021 and 2020, respectively, and primarily related to assets acquired in connection with business combinations. Future estimated amortization expense for identifiable intangible assets is as follows: (In millions) 2023 $ 594 2024 557 2025 511 2026 456 2027 414 Thereafter 1,645 Total $ 4,177 CTS Impairment — Fiscal 2021 During the quarter ended July 2, 2021, we adjusted our Aviation Systems segment reporting to better align our businesses and separated the CTS business from our Commercial Aviation Solutions reporting unit, creating a new reporting unit within the Commercial Aviation Solutions sector of our Aviation Systems segment. Immediately before and after our goodwill assignments, we completed an assessment of any potential goodwill impairment under our former and new reporting unit structure and determined that no impairment existed. To test for potential impairment of the long-lived assets, including identifiable intangible assets and property, plant and equipment, related to CTS, we compared the estimated future cash flows (on an undiscounted basis) to be generated from the use and hypothetical eventual disposition of the asset group to its carrying value and, as a result, we determined the carrying value of the CTS asset group was not recoverable. Next, we prepared an estimate of the fair value of CTS based on a combination of market-based valuation techniques, utilizing quoted market prices, comparable publicly reported transactions and projected discounted cash flows. We compared the fair value of CTS to our carrying value and recorded a $145 million non-cash charge for the impairment of CTS long-lived assets, including $63 million for impairment of identifiable intangible assets, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2021. Commercial Aviation Solutions Impairment — Fiscal 2020 During the fiscal year ended January 1, 2021, in conjunction with, and in advance of, the tests of goodwill related to our Commercial Aviation Solutions reporting unit, we also performed recoverability tests of the long-lived assets of our Commercial Aviation Solutions reporting unit, including identifiable intangible assets and property, plant and equipment. To test these long-lived assets for recoverability, we compared the estimated future cash flows (on an undiscounted basis) to be generated from the use and hypothetical eventual disposition of the asset group to its carrying value. As a result, we concluded that the long-lived assets of our Commercial Aviation Solutions reporting unit were impaired as of January 1, 2021 and we recorded a $257 million non-cash impairment charge Note 9: Goodwill in these Notes for additional information regarding Commercial Aviation Solutions impairments during fiscal 2020. |
ACCRUED WARRANTIES
ACCRUED WARRANTIES | 12 Months Ended |
Dec. 30, 2022 | |
Product Warranties Disclosures [Abstract] | |
ACCRUED WARRANTIES | NOTE 11: ACCRUED WARRANTIES Our liability for standard product warranties is included as a component of the “Other accrued items” and “Other long-term liabilities” line items in our Consolidated Balance Sheet. Changes in our liability for standard product warranties in fiscal 2022 and 2021 were as follows: (In millions) December 30, 2022 December 31, 2021 Balance at the beginning of the period $ 117 $ 133 Decrease from divestitures — (5) Accruals for product warranties issued during the period 39 46 Settlements made during the period (57) (56) Other, including foreign currency translation adjustments (9) (1) Balance at the end of the period $ 90 $ 117 |
CREDIT ARRANGEMENTS
CREDIT ARRANGEMENTS | 12 Months Ended |
Dec. 30, 2022 | |
Line of Credit Facility [Abstract] | |
CREDIT ARRANGEMENTS | NOTE 12: CREDIT ARRANGEMENTS On July 29, 2022, we established the 2022 Credit Facility. The 2022 Credit Facility replaces the 2019 Credit Facility and provides for revolving loans, swingline loans and letters of credit, with a sub-limit of $200 million for swingline loans and a sub-limit of $350 million for letters of credit, with the option to request an increase of the maximum amount of commitments up to $3.0 billion. At our election, borrowings in U.S. Dollars under the 2022 Credit Agreement will bear interest either based on the Secured Overnight Financing Rate (“ SOFR”) rate or the Base Rate (each, as defined in the 2022 Credit Agreement), plus an applicable margin. We are also required to pay a quarterly unused commitment fee and letter of credit fees based on our senior unsecured long-term debt securities (“Senior Debt Ratings”). The 2022 Credit Facility contains certain affirmative covenants, including, but not limited to: reporting obligations; maintenance of corporate existence and good standing; compliance with laws; maintenance of properties and insurance; payment of taxes; compliance with ERISA and environmental, anti-money laundering, sanctions, export controls, anti-corruption and certain other laws; and visitation and inspection by the administrative agent and the lenders. The 2022 Credit Facility also contains certain negative covenants, including, but not limited to: limiting certain liens on assets; limiting certain mergers, consolidations or sales of assets; and limiting certain investments in unrestricted subsidiaries. The 2022 Credit Facility also requires that L3Harris not permit its ratio of Consolidated Total Indebtedness to Total Capital, each as defined in the 2022 Credit Facility, to be greater than 0.65:1.00. We were in compliance with all covenants under the 2022 Credit Agreement at December 30, 2022. At December 30, 2022, we had no borrowings outstanding under the 2022 Credit Facility. |
DEBT
DEBT | 12 Months Ended |
Dec. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 13: DEBT Long-Term Debt Long-term debt, net is summarized below: (In millions) December 30, 2022 December 31, 2021 Variable-rate debt: Floating rate notes, due March 10, 2023 (1) $ 250 $ 250 Fixed-rate debt: 3.85% notes, due June 15, 2023 (“3.85% 2023 Notes”) 800 800 3.95% notes, due May 28, 2024 (“3.95% 2024 Notes”) 350 350 3.832% notes, due April 27, 2025 600 600 7.00% debentures, due January 15, 2026 100 100 3.85% notes, due December 15, 2026 (“3.85% 2026 Notes”) 550 550 6.35% debentures, due February 1, 2028 26 26 4.40% notes, due June 15, 2028 1,850 1,850 2.90% notes, due December 15, 2029 400 400 1.80% 2031 Notes, due January 15, 2031 (“1.80% 2031 Notes”) 650 650 4.854% notes, due April 27, 2035 400 400 6.15% notes, due December 15, 2040 300 300 5.054% notes, due April 27, 2045 500 500 Total variable and fixed-rate debt 6,776 6,776 Financing lease obligations and other debt 222 218 Total debt 6,998 6,994 Plus: unamortized bond premium 70 93 Less: unamortized discounts and issuance costs (25) (28) Total debt, net 7,043 7,059 Less: current portion of long-term debt, net (818) (11) Total long-term debt, net $ 6,225 $ 7,048 _______________ (1) During the first quarter of 2023, the Floating Rate Notes due March 2023 will be repaid and refinanced as long-term debt through the Term Loan 2025; therefore, the Floating Rate Notes due March 2023 have been classified as long-term debt in our Consolidated Balance Sheet as of December 30, 2022. The potential maturities of long-term debt, including the current portion of long-term debt and financing lease obligations, for the five years following the end of fiscal 2022 and, in total thereafter, are: $814 million in fiscal 2023; $365 million in fiscal 2024; $865 million in fiscal 2025; $664 million in fiscal 2026; $13 million in fiscal 2027; and $4,277 million thereafter. There were no repayments or issuances of fixed-rate or variable-rate debt during fiscal 2022. Variable-rate Debt. On November 22, 2022, we established a new $2.25 billion, three-year senior unsecured term loan facility by entering into the Term Loan 2025 with a syndicate of lenders. The Term Loan 2025 provides for term loans in up to two separate draws no later than June 30, 2023, with the proceeds to be used: (i) to finance the acquisition of the TDL product line; (ii) to repay all amounts under the Floating Rate Notes 2023; (iii) to pay the fees, costs and expenses incurred in connection with the foregoing; and (iv) for general corporate purposes in an amount up to $40 million. See Note 26: Subsequent Events in these Notes for details on borrowings under the Term Loan 2025. At L3Harris’ election, borrowings under the Term Loan 2025 will bear interest at: (i) the sum of the term SOFR rate for any tenor comparable to the applicable interest period, plus 0.10%, plus an applicable margin between 1.125% and 1.875% (initially 1.250%) that varies based on the ratings of L3Harris’ Senior Debt Ratings; or (ii) the base rate (as described in L3Harris’ Current Report on Form 8-K filed with the SEC on August 4, 2022), plus an applicable margin between 0.125% and 0.875% (initially 0.250%) that varies based on the Senior Debt Ratings. The Term Loan 2025 requires L3Harris to pay a quarterly unused commitment fee commencing on January 17, 2023 at an applicable rate per annum between 0.090% and 0.250% (initially 0.110%) that varies based on the Senior Debt Ratings. We incurred $2 million of debt issuance costs related to the issuance of the Term Loan 2025, which will be amortized over the life of the Term Loan 2025 and will be included as a component of the “Interest expense, net” line item in our Consolidated Statement of Operations. The Term Loan 2025 also contains representations, warranties, covenants and events of default that are substantially similar to those in the 2022 Credit Agreement, as described in Note 12: Credit Arrangements in these Notes. The Term Loan 2025 matures on November 21, 2025. L3Harris may prepay amounts borrowed under the Term Loan 2025 at any time, and L3Harris is required to prepay all outstanding term loans ratably from the proceeds of any new indebtedness, subject to certain exceptions set forth in the Term Loan 2025, including with respect to any proceeds received from: (i) the 2022 Credit Agreement, as described in Note 12: Credit Arrangements in these Notes; (ii) indebtedness incurred in the ordinary course of business; (iii) indebtedness used to fund any acquisition; (iv) refinancing; (v) commercial paper issuances; (vi) letters of credit; (vii) working capital facilities of foreign subsidiaries; and (viii) other indebtedness in an aggregate principal amount not greater than $500 million. At December 30, 2022, no borrowings were outstanding under the Term Loan 2025. Long-Term Debt Repaid — Fiscal 2020 Fixed-rate Debt. On December 14, 2020, we completed our optional redemption of the entire outstanding 4.95% 2021 Notes due February 15, 2021 (“4.95% 2021 Notes”) for a redemption price of $650 million, as set forth in the 4.95% 2021 Notes. After adjusting for the carrying value of our unamortized premium, we recorded a $2 million gain on the extinguishment of the 4.95% 2021 Notes, which is included as a component of the “Non-operating income, net” line item in our Consolidated Statement of Operations for fiscal 2020. Long-Term Debt Issued — Fiscal 2020 Fixed-rate Debt. On November 25, 2020, in order to fund the optional redemption of the 4.95% 2021 Notes as described above under “Long-Term Debt Repaid — Fiscal 2020,” we completed the issuance of the 1.80% 2031 Notes. Interest on the 1.80% 2031 Notes is payable semi-annually in arrears on January 15 and July 15 of each year, commencing on July 15, 2021. At any time prior to October 15, 2030, we may redeem the 1.80% 2031 Notes, in whole or in part, at our option, at a “make-whole” redemption price equal to the greater of 100% of the principal amount of the 1.80% 2031 Notes or the sum of the present values of the remaining scheduled payments of the principal plus accrued interest (other than interest accruing to the date of redemption) on the notes being redeemed, discounted to the redemption date on a semi-annual basis at the “Treasury Rate,” as defined in the 1.80% 2031 Notes, plus 15 basis points. We will pay accrued interest on the principal amount of notes being redeemed to, but not including, the redemption date. At any time on or after October 15, 2030, we may redeem the 1.80% 2031 Notes, in whole or in part, at our option, at a redemption price equal to 100% of the principal amount of the notes being redeemed, plus accrued interest on the principal amount of the notes being redeemed to, but not including, the redemption date. In addition, upon change of control combined with a below-investment-grade rating event, we may be required to make an offer to repurchase the 1.80% 2031 Notes at a price equal to 101% of the aggregate principal amount of the notes being repurchased, plus accrued interest on the notes being repurchased to, but not including, the date of repurchase. We incurred $6 million of debt issuance costs related to the issuance of the 1.80% 2031 Notes, which are being amortized over the life of the 1.80% 2031 Notes, and such amortization is included as a component of the “Interest expense, net” line item in our Consolidated Statement of Operations. Variable-rate Debt. During the first quarter of 2020, we completed the issuance and sale of $250 million in aggregate principal amount of the Floating Rate Notes due 2023. The Floating Rate Notes 2023 bear interest at a floating rate, reset quarterly, equal to three-month London interbank offered rate plus 0.75% per year. Interest on the Floating Rate Notes 2023 is payable quarterly in arrears on March 10, June 10, September 10 and December 10 of each year, commencing on June 10, 2020. The Floating Rate Notes 2023 are unsecured and unsubordinated and rank equally in right of payment with all other unsecured and unsubordinated indebtedness. The Floating Rate Notes 2023 are not redeemable at our option prior to maturity. Debt issuance costs related to the issuance of the Floating Rate Notes 2023 were not material. We used the net proceeds from the sale of the Floating Rate Notes 2023 to repay at maturity the aggregate principal amount of our Floating Rate Notes due April 30, 2020. Debt Exchange In connection with the L3Harris Merger, on July 2, 2019, we settled our previously announced debt exchange offers in which eligible holders of L3 senior notes (“L3 Notes”) could exchange such outstanding notes for (1) up to $3.35 billion aggregate principal amount of new notes issued by L3Harris (“New L3Harris Notes”) and (2) one dollar in cash for each $1,000 of principal amount. Each series of the New L3Harris Notes issued has an interest rate and maturity date that is identical to the L3 Notes. (In millions) Aggregate Principal Aggregate Principal Aggregate Principal 4.95% 2021 Notes $ 650 $ 501 $ 149 3.85% 2023 Notes 800 741 59 3.95% 2024 Notes 350 326 24 3.85% 2026 Notes 550 535 15 4.40% 2028 Notes, due June 15, 2028 (“4.40% 2028 Notes”) 1,000 918 82 Total $ 3,350 $ 3,021 $ 329 Following the settlement of the exchange offers, there was $329 million of existing L3 Notes outstanding, which remained the senior unsecured obligations of L3. On December 14, 2020, we redeemed the 4.95% 2021 Notes, as described above under “Long-Term Debt Repaid in Fiscal 2020.” Interest on the remaining New L3Harris Notes is payable semi-annually in arrears on June 15 and December 15, commencing on December 15, 2019, in the case of the 3.85% 2023 Notes, 3.85% 2026 Notes and 4.40% 2028 Notes; and on May 28 and November 28, commencing on November 28, 2019, in the case of the 3.95% 2024 Notes. The New L3Harris Notes are unsecured senior obligations and rank equally in right of payment with all other L3Harris senior unsecured debt. The New L3Harris Notes are redeemable in whole or in part at any time or in part from time to time, at our option, until three months prior to the maturity date, in the case of the 3.95% 2024 Notes, 3.85% 2026 Notes and 4.40% 2028 Notes, and until one month prior to the maturity date, in the case of the 3.85% 2023 Notes, at a redemption price equal to the greater of 100 percent of the principal amount of the notes to be redeemed or the sum of the present values of the principal amount and the remaining scheduled payments of interest on the notes to be redeemed, discounted from the scheduled payment dates to the date of redemption at the “treasury rate” as defined in the note, plus 20 basis points, in the case of the 3.85% 2023 Notes and 3.95% 2024 Notes, or 25 basis points, in the case of the 3.85% 2026 Notes and 4.40% 2028 Notes, plus, in each case, accrued and unpaid interest due at the date of redemption. On March 31, 2020, we commenced offers to eligible holders (“Exchange Offers”) to exchange any and all outstanding New L3Harris Notes issued by L3Harris as set forth in the table above (the “Original Notes”), which were previously issued pursuant to an exemption from the registration requirements of the Securities Act, for an equal principal amount of new notes registered under the Securities Act (the “Exchange Notes”). The Exchange Notes were offered to satisfy L3Harris’ obligations under the registration rights agreement entered into as part of the issuance of the Original Notes, which occurred in exchange for the L3 Notes as described above. The terms of the Exchange Notes issued in the Exchange Offers are substantially identical to the terms of the corresponding series of the Original Notes, except that the Exchange Notes are registered under the Securities Act and the transfer restrictions, registration rights and related special interest provisions applicable to the Original Notes do not apply to the Exchange Notes. Each series of Exchange Notes is part of the same corresponding series of the Original Notes and were issued under the same base indenture. The Exchange Offers expired at 5:00p.m., New York City time, on May 1, 2020. On May 5, 2020, we settled the Exchange Offers and Issued Exchange Notes for validly tendered Original Notes for over 99.9 percent of the 4.95% 2021 Notes, 3.85% 2023 Notes, 3.95% 2024 Notes and 3.85% 2026 Notes and 98.9 percent of the 4.40% 2028 Notes. Long-Term Debt Issued Prior to Fiscal 2020 that Remained Outstanding at December 30, 2022 On November 27, 2019, we completed the issuance of $400 million in aggregate principal amount of 2.90% notes due December 15, 2029 (the “2.90% 2029 Notes”). Interest on the 2.90% 2029 Notes is payable semi-annually in arrears on June 15 and December 15 of each year, commencing on June 15, 2020. At any time prior to September 15, 2029, we may redeem the 2.90% 2029 Notes, in whole or in part, at our option, at a “make-whole” redemption price equal to the greater of 100% of the principal amount of the 2.90% 2029 Notes or the sum of the present values of the remaining scheduled payments of the principal plus accrued interest (other than interest accruing to the date of redemption) on the notes being redeemed, discounted to the redemption date on a semi-annual basis at the “Treasury Rate,” as defined in the 2.90% 2029 Notes, plus 20 basis points. We will pay accrued interest on the principal amount of notes being redeemed to, but not including, the redemption date. At any time on or after September 15, 2029, we may redeem the 2.90% 2029 Notes, in whole or in part, at our option, at a redemption price equal to 100% of the principal amount of the notes being redeemed, plus accrued interest on the principal amount of the notes being redeemed to, but not including, the redemption date. In addition, upon change of control combined with a below-investment-grade rating event, we may be required to make an offer to repurchase the 2.90% 2029 Notes at a price equal to 101% of the aggregate principal amount of the notes being repurchased, plus accrued interest on the notes being repurchased to, but not including, the date of repurchase. We incurred $3 million of debt issuance costs related to the issuance of the 2.90% 2029 Notes, which are being amortized over the life of the 2.90% 2029 Notes, and such amortization is included as a component of the “Interest expense, net” line item in our Consolidated Statement of Operations. On June 4, 2018, we completed the issuance of $850 million in aggregate principal amount of 4.40% notes due June 15, 2028 (the “New 2028 Notes”). Interest on the New 2028 Notes is payable semi-annually in arrears on June 15 and December 15 of each year, commencing on December 15, 2018. At any time prior to March 15, 2028, we may redeem the New 2028 Notes, in whole or in part, at our option, at a “make-whole” redemption price equal to the greater of 100% of the principal amount of the New 2028 Notes or the sum of the present values of the remaining scheduled payments of the principal and interest (other than interest accruing to the date of redemption) on the notes being redeemed, discounted to the redemption date on a semi-annual basis at the “Treasury Rate,” as defined in the New 2028 Notes, plus 25 basis points. We will pay accrued interest on the principal amount of notes being redeemed to, but not including, the redemption date. At any time on or after March 15, 2028, we may redeem the New 2028 Notes, in whole or in part, at our option, at a redemption price equal to 100% of the principal amount of the notes being redeemed, plus accrued interest on the principal amount of the notes being redeemed to, but not including, the redemption date. In addition, upon change of control combined with a below-investment-grade rating event, we may be required to make an offer to repurchase the New 2028 Notes at a price equal to 101% of the aggregate principal amount of the notes being repurchased, plus accrued interest on the notes being repurchased to, but not including, the date of repurchase. We incurred $8 million of debt issuance costs related to the issuance of the New 2028 Notes, which are being amortized over the life of the New 2028 Notes, and such amortization is included as a component of the “Interest expense, net” line item in our Consolidated Statement of Operations. On April 27, 2015, in connection with the then-pending acquisition of Exelis, Inc., we agreed to fund a portion of the cash consideration and other amounts payable under the terms of the merger agreement and to redeem certain of our existing notes, we issued long-term fixed-rate debt securities in the aggregate amount of $2.4 billion. The principal amounts, interest rates and maturity dates of these securities that remained outstanding at December 30, 2022 were as follows: • $600 million in aggregate principal amount of 3.832% notes due April 27, 2025 (the “2025 Notes”), • $400 million in aggregate principal amount of 4.854% notes due April 27, 2035 (the “2035 Notes”) and • $500 million in aggregate principal amount of 5.054% notes due April 27, 2045 (the “2045 Notes”) and collectively with the 2025 Notes and 2035 Notes, the “Exelis Notes”). Interest on each series of the Exelis Notes is payable semi-annually in arrears on April 27 and October 27 of each year, commencing October 27, 2015. The Exelis Notes are redeemable at our option up to one month prior to the scheduled maturity date at a price equal to the greater of 100% of the principal amount of the notes being redeemed or the sum of the present values of the remaining scheduled payments, plus accrued interest, discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate, as defined, plus (i) 30 basis points in the case of the 2025 Notes, (ii) 35 basis points in the case of the 2035 Notes and (iii) 40 basis points in the case of the 2045 Notes. In addition, upon a change of control combined with a below-investment-grade rating event, we may be required to make an offer to repurchase the Exelis Notes at a price equal to 101% of the aggregate principal amount of the notes being repurchased, plus accrued interest on the notes being repurchased to, excluding the date of repurchase. On December 3, 2010, we completed the issuance of $300 million in aggregate principal amount of 6.150%. notes due December 15, 2040 (the “2040 Notes”). The 2040 Notes are redeemable at our option at a price equal to the greater of 100% of the principal amount of the notes being redeemed or the sum of the present values of the remaining scheduled payments, plus accrued interest, discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the “Treasury Rate”, as defined, plus 35 basis points. In addition, upon a change of control combined with a below-investment-grade rating event, we may be required to make an offer to repurchase the notes at a price equal to 101% of the aggregate principal amount of the notes being repurchased, plus accrued interest on the notes being repurchased to, but not including, the date of repurchase. In February 1998, we completed the issuance of $150 million in aggregate principal amount of 6.35% debentures due February 1, 2028. On December 5, 2007, we repurchased and retired $25 million in aggregate principal amount of the debentures. On February 1, 2008, we redeemed $99 million in aggregate principal amount of the debentures pursuant to the procedures for redemption at the option of the holders of the debentures. We may redeem the remaining $26 million in aggregate principal amount of the debentures in whole, or in part, at any time at a pre-determined redemption price. In January 1996, we completed the issuance of $100 million in aggregate principal amount of 7.00% debentures due January 15, 2026. The debentures are not redeemable prior to maturity. The following table presents the carrying amounts and estimated fair values of our long-term debt: December 30, 2022 December 31, 2021 (In millions) Carrying Fair Carrying Fair Long-term debt (including current portion) (1) $ 7,043 $ 6,569 $ 7,059 $ 7,701 _______________ (1) The fair value was estimated using a market approach based on quoted market prices for our debt traded in the secondary market. If our long-term debt in our balance sheet were measured at fair value, it would be categorized in Level 2 of the fair value hierarchy. Short-Term Debt Our short-term debt was $2 million at each of December 30, 2022 and December 31, 2021. Interest expense incurred on our short-term debt was not material in fiscal 2022, 2021 or 2020. Interest Paid |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS | 12 Months Ended |
Dec. 30, 2022 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | NOTE 14: PENSION AND OTHER POSTRETIREMENT BENEFITS Defined Contribution Plans As of December 30, 2022, we sponsor numerous defined contribution savings plans, which allow our eligible employees to contribute a portion of their pre-tax and/or after-tax income in accordance with specified guidelines. The plans include several match contribution formulas which require us to match a percentage of the employee contributions up to certain limits, generally totaling 6.0% of employee eligible pay. Matching contributions, net of forfeitures, charged to expense were $226 million, $230 million and $225 million in fiscal 2022, 2021 and 2020, respectively. Deferred Compensation Plans We also sponsor certain non-qualified deferred compensation plans. The following table provides the fair value of our deferred compensation plan investments and liabilities by category and by fair value hierarchy level: December 30, 2022 December 31, 2021 (In millions) Total Level 1 Total Level 1 Assets Deferred compensation plan assets: (1) Equity and fixed income securities $ 64 $ 64 $ 77 $ 77 Investments measured at NAV: Corporate-owned life insurance 33 35 Total fair value of deferred compensation plan assets $ 97 $ 112 Liabilities Deferred compensation plan liabilities: (2) Equity securities and mutual funds $ 8 $ 8 $ 6 $ 6 Investments measured at NAV: Common/collective trusts and guaranteed investment contracts 192 177 Total fair value of deferred compensation plan liabilities $ 200 $ 183 _______________ (1) Represents diversified assets held in a “rabbi trust” associated with our non-qualified deferred compensation plans, which we include in the “Other current assets” and “Other non-current assets” line items in our Consolidated Balance Sheet, and which are measured at fair value. (2) Primarily represents obligations to pay benefits under certain non-qualified deferred compensation plans, which we include in the “Compensation and benefits” and “Other long-term liabilities” line items in our Consolidated Balance Sheet. Under these plans, participants designate investment options (including stock and fixed-income funds), which serve as the basis for measurement of the notional value of their accounts. Defined Benefit Plans We sponsor numerous defined benefit pension plans for eligible employees. Benefits for most participants under the terms of these plans are based on the employee’s years of service and compensation. We fund these plans as required by statutory regulations and through voluntary contributions. Some of our employees also participate in other postretirement defined benefit plans such as health care and life insurance plans. Effective January 1, 2020, for certain acquired L3 U.S. defined benefit pension plans, benefit accruals were frozen and replaced with a 1% cash balance benefit formula for certain employees who were not considered highly compensated on December 31, 2018. At December 31, 2022, the Salaried Pension Plan was merged into the Aviation Products Pension Plan. The merger will result in lower Pension Benefit Guaranty Corporation (“PBGC”) premiums in 2023 and thereafter. Our Aviation Products Pension Plan is our largest defined benefit pension plan, with assets valued at $6.4 billion and a PBO of $6.5 billion as of December 30, 2022. During fiscal 2022, we reduced our pension benefit obligations by approximately $64 million by purchasing group annuity policies and transferring approximately $64 million of pension plan assets to an insurance company. There was no gain or loss as a result of this transaction. During fiscal 2021, we reduced our pension benefit obligations by approximately $250 million by purchasing group annuity policies and transferring approximately $250 million of pension plan assets to an insurance company. As a result of the annuity purchases, we recognized a pre-tax loss of $4 million in fiscal 2021, which is included as a component of the “Non-operating income, net” line item in our Consolidated Statement of Operations. We also recognized a pre-tax curtailment gain of $3 million in fiscal 2021 as a result of employee terminations, which is included as a component of the “Non-operating income, net” line item in our Consolidated Statement of Operations. Balance Sheet Information Amounts recognized in our Consolidated Balance Sheet for defined benefit plans reflect the funded status of our plans. The following table provides a summary of the funded status of our defined benefit plans and the presentation of such balances within our Consolidated Balance Sheet: December 30, 2022 December 31, 2021 (In millions) Pension Other Total Pension Other Total Fair value of plan assets $ 7,411 $ 242 $ 7,653 $ 9,604 $ 320 $ 9,924 PBO (7,494) (228) (7,722) (10,007) (348) (10,355) Funded status $ (83) $ 14 $ (69) $ (403) $ (28) $ (431) Consolidated Balance Sheet line item amounts: Other non-current assets $ 144 $ 66 $ 210 $ 150 $ 51 $ 201 Compensation and benefits (11) (6) (17) (11) (7) (18) Defined benefit plans (216) (46) (262) (542) (72) (614) A portion of our PBO includes amounts that have not yet been recognized as expense (or reductions of expense) in our results of operations. Such amounts are recorded in the “Accumulated other comprehensive loss” line item in our Consolidated Balance Sheet until they are amortized as a component of net periodic benefit income. The following table provides a summary of pre-tax amounts recorded within Accumulated other comprehensive loss: December 30, 2022 December 31, 2021 (In millions) Pension Other Total Pension Other Total Net actuarial loss (gain) $ 243 $ (100) $ 143 $ 209 $ (73) $ 136 Net prior service (credit) cost (183) 5 (178) (218) 6 (212) $ 60 $ (95) $ (35) $ (9) $ (67) $ (76) The following table provides a roll-forward of the PBO for our defined benefit plans: December 30, 2022 December 31, 2021 (In millions) Pension Other Total Pension Other Total Change in benefit obligation Benefit obligation at beginning of fiscal year $ 10,007 $ 348 $ 10,355 $ 11,045 $ 387 $ 11,432 Service cost 44 2 46 66 2 68 Interest cost 220 7 227 188 5 193 Actuarial gain (2,097) (107) (2,204) (381) (22) (403) Benefits paid (1) (626) (22) (648) (555) (24) (579) Settlements (2) — — — (268) — (268) Expenses paid (26) — (26) (31) — (31) Foreign currency exchange rate changes (28) — (28) 2 — 2 Divestiture (8) — (8) (65) — (65) Other 8 — 8 6 — 6 Benefit obligation at end of fiscal year $ 7,494 $ 228 $ 7,722 $ 10,007 $ 348 $ 10,355 _______________ (1) Fiscal 2022 includes approximately $64 million associated with the purchase of group annuity policies. The transaction is reflected in Benefits paid as settlement accounting had not been met. (2) Fiscal 2021 includes approximately $250 million associated with the purchase of group annuity policies. Actuarial gains in the PBO as of December 30, 2022 were primarily the result of an increase in discount rates related to increased interest rates. Additionally, the legacy Harris Salaried medical plan replaced the self-insured arrangement with a fully-insured group Humana MAPD plan for the majority of Medicare-eligible participants, which resulted in a $23 million gain. Other sources of gains and losses such as plan experience, updated census data, mortality updates and minor adjustments to actuarial assumptions generated combined gains and losses of less than 1% of expected year end obligations. The following table provides a roll-forward of the assets and the ending funded status of our defined benefit plans: December 30, 2022 December 31, 2021 (In millions) Pension Other Total Pension Other Total Change in plan assets Plan assets at beginning of fiscal year $ 9,604 $ 320 $ 9,924 $ 9,301 $ 299 $ 9,600 Actual return on plan assets (1,516) (51) (1,567) 1,215 43 1,258 Employer contributions 16 (5) 11 17 2 19 Benefits paid (1) (626) (22) (648) (555) (24) (579) Settlements (2) — — — (268) — (268) Expenses paid (26) — (26) (31) — (31) Foreign currency exchange rate changes (32) — (32) 1 — 1 Divestiture (10) — (10) (78) — (78) Other 1 — 1 2 — 2 Plan assets at end of fiscal year $ 7,411 $ 242 $ 7,653 $ 9,604 $ 320 $ 9,924 Funded status at end of fiscal year $ (83) $ 14 $ (69) $ (403) $ (28) $ (431) _______________ (1) Fiscal 2022 includes approximately $64 million associated with the transfer of plan assets to an insurance company. The transaction is reflected in Benefits paid as settlement accounting had not been met. (2) Fiscal 2021 includes approximately $250 million associated with the transfer of plan assets to an insurance company. The accumulated benefit obligation for all defined benefit pension plans was $7.5 billion at December 30, 2022. The following tables provide information for benefit plans with accumulated benefit obligations in excess of plan assets and benefit plans with PBO in excess of plan assets: December 30, 2022 December 31, 2021 (In millions) Pension Other Pension Other Accumulated benefit obligation $ 6,698 N/A $ 9,216 N/A Fair value of plan assets 6,472 N/A 8,672 N/A December 30, 2022 December 31, 2021 (In millions) Pension Other Pension Other PBO $ 6,699 $ 52 $ 9,340 $ 109 Fair value of plan assets 6,472 — 8,786 30 Statement of Operations Information The following table provides the components of net periodic benefit (income) loss and other amounts recognized in other comprehensive income in fiscal 2022, 2021 and 2020 as they pertain to our defined benefit plans: Pension Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Net periodic benefit income Service cost $ 44 $ 66 $ 65 Interest cost 220 188 273 Expected return on plan assets (624) (621) (630) Amortization of net actuarial loss 9 30 10 Amortization of prior service credit (27) (28) (28) Cost for special termination benefits — — 1 Effect of curtailments or settlements — 1 — Net periodic benefit income $ (378) $ (364) $ (309) Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial loss (gain) $ 42 $ (972) $ 403 Prior service cost 8 2 1 Amortization of net actuarial loss (9) (30) (10) Amortization of prior service credit 27 28 28 Currency translation adjustment 1 1 2 Recognized prior service credit — 4 — Recognized net actuarial loss — (4) — Total change recognized in other comprehensive income 69 (971) 424 Total impact from net periodic benefit (income) loss and changes in other comprehensive income $ (309) $ (1,335) $ 115 Other Benefits Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Net periodic benefit income Service cost $ 2 $ 2 $ 2 Interest cost 7 5 10 Expected return on plan assets (20) (20) (21) Amortization of net actuarial gain (7) — (3) Amortization of prior service cost 1 1 — Net periodic benefit income $ (17) $ (12) $ (12) Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial (gain) loss $ (34) $ (46) $ 4 Prior service cost — — 8 Amortization of net actuarial gain 7 — 3 Amortization of prior service cost (1) (1) — Total change recognized in other comprehensive income (28) (47) 15 Total impact from net periodic benefit (income) loss and changes in other comprehensive income $ (45) $ (59) $ 3 Defined Benefit Plan Assumptions The determination of the assumptions related to defined benefit plans are based on the provisions of the applicable accounting pronouncements, review of various market data and discussions with our actuaries. We develop each assumption using relevant Company experience in conjunction with market-related data. Assumptions are reviewed annually and adjusted as appropriate. The following tables provide the weighted-average assumptions used to determine PBO and net periodic benefit income, as they pertain to our defined benefit pension plans: Obligation assumptions as of: December 30, 2022 December 31, 2021 Discount rate 5.18 % 2.75 % Rate of future compensation increase 3.01 % 3.01 % Cash balance interest crediting rate 4.00 % 3.50 % Cost assumptions for fiscal periods ended: December 30, 2022 December 31, 2021 January 1, 2021 Discount rate to determine service cost 2.69 % 2.26 % 2.87 % Discount rate to determine interest cost 2.27 % 1.80 % 2.74 % Expected return on plan assets 7.44 % 7.43 % 7.68 % Rate of future compensation increase 3.01 % 3.01 % 2.80 % Cash balance interest crediting rate 3.50 % 3.50 % 3.50 % Key assumptions for our Aviation Products Pension Plan (our largest defined benefit pension plan with 87% of the total PBO included a discount rate for obligation assumptions of 5.19%, a cash balance interest crediting rate of 4.00% and expected return on plan assets of 7.50% for fiscal 2022, which is being maintained at 7.50% for fiscal 2023. There is also a frozen pension equity benefit that assumes a 3.75% interest crediting rate. The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic benefit income, as they pertain to our other postretirement defined benefit plans: Obligation assumptions as of: December 30, 2022 December 31, 2021 Discount rate 5.16 % 2.60 % Rate of future compensation increase N/A N/A Cost assumptions for fiscal periods ended: December 30, 2022 December 31, 2021 January 1, 2021 Discount rate to determine service cost 2.91 % 2.49 % 3.25 % Discount rate to determine interest cost 2.06 % 1.42 % 2.55 % Rate of future compensation increase N/A N/A N/A The expected long-term rate of return on plan assets reflects the expected returns for each major asset class in which the plans invest, the weight of each asset class in the strategic allocation, the correlations among asset classes and their expected volatilities. Our expected rate of return on plan assets is estimated by evaluating both historical returns and estimates of future returns. Specifically, the determination of the expected long-term rate of return takes into consideration: (1) the plan’s actual historical annual return on assets over the past 15-, 20- and 25-year time periods, (2) historical broad market returns over long-term timeframes weighted by the plan’s strategic allocation and (3) independent estimates of future long-term asset class returns, weighted by the plan’s strategic allocation. Based on this approach, the long-term expected annual rate of return on assets is estimated at 7.50% for fiscal 2023 for the U.S. defined benefit pension plans. The weighted average long-term expected annual rate of return on assets for all defined benefit pension plans is estimated to be 7.44% for fiscal 2023. In fiscal 2021, we adopted updated mortality tables, which resulted in an increase in the defined benefit plans’ PBO as of December 31, 2021 and estimated net periodic benefit income beginning with fiscal 2022. The assumed composite rate of future increases in the per capita healthcare costs (the healthcare trend rate) is 6.90% for fiscal 2023, decreasing ratably to 4.60% by fiscal 2033. To the extent that actual experience differs from these assumptions, the effect will be accumulated and generally amortized for each plan to the extent required over the estimated future life expectancy or, if applicable, the future working lifetime of the plan’s active participants. Investment Policy The investment strategy for managing defined benefit plan assets is to seek an optimal rate of return relative to an appropriate level of risk. We manage substantially all defined benefit plan assets on a commingled basis in a master investment trust. In making these asset allocation decisions, we take into account recent and expected returns and volatility of returns for each asset class, the expected correlation of returns among the different investments, as well as anticipated funding and cash flows. To enhance returns and mitigate risk, we diversify our investments by strategy, asset class, geography and sector and engage a large number of managers to gain broad exposure to the markets. The following table provides the current strategic target asset allocation ranges by asset category: Target Asset Equity investments 35 % — 55% Fixed income investments 25 % — 35% Alternative investments 12 % — 30% Cash and cash equivalents 0 % — 10% Fair Value of Plan Assets The following is a description of the valuation techniques and inputs used to measure fair value for major categories of investments as reflected in the table that follows such description: • Domestic and international equities, which include common and preferred shares, domestic listed and foreign listed equity securities, open-ended and closed-ended mutual funds, real estate investment trusts and exchange traded funds, are generally valued at the closing price reported on the major market exchanges on which the individual securities are traded at the measurement date. Because these assets are traded predominantly on liquid, widely traded public exchanges, equity securities are categorized as Level 1 assets. • Private equity funds, which include buy-out, mezzanine, venture capital, distressed asset and secondary funds, are typically limited partnership investment structures. Private equity funds are valued using a market approach based on NAV calculated by the funds and are not publicly available. Private equity funds generally have liquidity restrictions that extend for ten • Real estate funds, which include core, core plus, value-add and opportunistic funds, are typically limited partnership investment structures. Real estate funds are valued using a market approach based on NAV calculated by the funds and are not publicly available. Real estate funds generally permit redemption on a quarterly basis with 90 or fewer days-notice. At December 30, 2022, our defined benefit plans had future unfunded commitments totaling $33 million related to real estate fund investments. At December 31, 2021, our defined benefit plans had future unfunded commitments totaling $100 million related to real estate fund investments. • Hedge funds, which include equity long/short, event-driven, fixed-income arbitrage and global macro strategies, are typically limited partnership investment structures. Limited partnership interests in hedge funds are valued using a market approach based on NAV calculated by the funds and are not publicly available. Hedge funds generally permit redemption on a quarterly or more frequent basis with 90 or fewer days notice. At each of December 30, 2022 and December 31, 2021, our defined benefit plans had no future unfunded commitments related to hedge fund investments. • Fixed income investments, which include U.S. Government securities, investment and non-investment-grade corporate bonds and securitized bonds, are generally valued using pricing models that use verifiable, observable market data such as interest rates, benchmark yield curves and credit spreads, bids provided by brokers or dealers or quoted prices of securities with similar characteristics. Fixed income investments are generally categorized as Level 2 assets. Fixed income funds valued at the closing price reported on the major market exchanges on which the individual fund is traded are categorized as Level 1 assets. • Other is comprised of guaranteed insurance contracts valued at book value, which approximates fair value, calculated using the prior-year balance adjusted for investment returns and changes in cash flows and corporate owned life insurance policies valued at the accumulated benefit. • Cash and cash equivalents are primarily comprised of short-term money market funds valued at cost, which approximates fair value, or valued at quoted market prices of identical instruments. Cash and currency are categorized as Level 1 assets; cash equivalents, such as money market funds or short-term commingled funds, are categorized as Level 2 assets. • Certain investments that are valued using the NAV per share (or its equivalent) as a practical expedient are not categorized in the fair value hierarchy and are included in the table to permit reconciliation of the fair value hierarchy to the aggregate defined benefit plan assets. The following tables provide the fair value of plan assets held by our defined benefit plans by asset category and by fair value hierarchy level: December 30, 2022 (In millions) Total Level 1 Level 2 Level 3 Asset Category Equities: Domestic equities $ 1,275 $ 1,275 $ — $ — International equities 1,044 1,002 42 — Real Estate Investment Trusts 192 192 — — Fixed income: Corporate bonds 1,118 — 995 123 Government securities 320 — 320 — Securitized assets 166 — 166 — Fixed income funds 92 4 88 — Cash and cash equivalents 148 22 126 — Total 4,355 $ 2,495 $ 1,737 $ 123 Investments Measured at NAV: Equity funds 1,661 Fixed income funds 299 Hedge funds 294 Private equity funds 696 Real estate funds 372 Other 2 Total Investments Measured at NAV 3,324 Payables, net (26) Total fair value of plan assets $ 7,653 December 31, 2021 (In millions) Total Level 1 Level 2 Level 3 Asset Category Equities: Domestic equities $ 1,684 $ 1,684 $ — $ — International equities 1,367 1,278 89 — Real Estate Investment Trusts 259 259 — — Fixed income: Corporate bonds 1,411 — 1,335 76 Government securities 448 — 448 — Securitized assets 99 — 99 — Fixed income funds 102 5 97 — Cash and cash equivalents 337 9 328 — Total 5,707 $ 3,235 $ 2,396 $ 76 Investments Measured at NAV: Equity funds 2,667 Fixed income funds 444 Hedge funds 386 Private equity funds 559 Real estate funds 180 Other 3 Total Investments Measured at NAV 4,239 Payables, net (22) Total fair value of plan assets $ 9,924 Contributions Funding requirements under IRS rules are a major consideration in making contributions to our postretirement benefit plans. With respect to U.S. qualified pension plans, we intend to contribute annually not less than the required minimum funding thresholds. The Employee Retirement Income Security Act of 1974, as amended by the Pension Protection Act of 2006 and further amended by the Worker, Retiree, and Employer Recovery Act of 2008, MAP-21 and applicable Internal Revenue Code regulations mandate minimum funding thresholds. The Highway and Transportation Funding Act of 2014, the Bipartisan Budget Act of 2015, the American Rescue Plan Act of 2021 and the Infrastructure Investment and Jobs Act further extended the interest rate stabilization provision of MAP-21. As a result of prior voluntary contributions, we made no material contributions to our U.S. qualified defined benefit pension plans in fiscal 2022, 2021 or 2020 and are not required to make any contributions to these plans during fiscal 2023 or for several years thereafter. Estimated Future Benefit Payments The following table provides the projected timing of payments for benefits earned to date and benefits expected to be earned for future service by current active employees under our defined benefit plans: (In millions) Pension Other Benefits (1) Total Fiscal Years: 2023 $ 564 $ 21 $ 585 2024 568 21 589 2025 569 20 589 2026 569 19 588 2027 565 19 584 2028 — 2032 2,730 82 2,812 _______________ (1) Projected payments for Other Benefits reflect net payments from the Company, which include subsidies that reduce the gross payments by less than 1%. Multi-employer Benefit Plans Certain of our businesses participate in multi-employer defined benefit pension plans. We make cash contributions to these plans under the terms of collective-bargaining agreements that cover union employees based on a fixed rate per hour of service worked by the covered employees. The risks of participating in these multi-employer plans are different from single-employer plans in the following aspects: (1) assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers, (2) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers and (3) if we choose to stop participating in some of our multi-employer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Cash contributed and expenses recorded for our multi-employer plans were not material in fiscal 2022, 2021 or 2020. |
STOCK OPTIONS AND OTHER SHARE-B
STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION | NOTE 15: STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION At December 30, 2022, we had options or other share-based compensation outstanding under two Harris shareholder-approved employee stock incentive plans (“SIPs”), the Harris Corporation 2005 Equity Incentive Plan (As Amended and Restated Effective August 27, 2010) and the L3Harris Technologies, Inc. 2015 Equity Incentive Plan (As Amended and Restated Effective August 28, 2020) (the “2015 EIP”), as well as under employee stock incentive plans of L3 assumed by L3Harris (collectively, “L3Harris SIPs”). We believe that share-based awards more closely align the interests of participants with those of shareholders. Summary of Share-Based Compensation Expense The following table summarizes the amounts and classification of share-based compensation expense: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Total expense $ 109 $ 129 $ 94 Included in: Cost of product sales and services $ 19 $ 14 $ 11 Engineering, selling and administrative expenses 90 115 83 Income from continuing operations 109 129 94 Tax effect on share-based compensation expense (27) (33) (24) Total share-based compensation expense after-tax $ 82 $ 96 $ 70 As of December 30, 2022, a total of 14.3 million shares of common stock remained available under our 2015 EIP for future issuance (excluding shares to be issued in respect of outstanding options and other share-based awards, and with each full-value award (e.g., restricted stock and restricted stock unit awards and performance share and performance share unit awards) counting as 4.6 shares against the total remaining for future issuance). During fiscal 2022, we issued an aggregate of 0.8 million shares of common stock under the terms of our L3Harris SIPs, which is net of shares withheld for tax purposes. Stock Options The following information relates to stock options, including performance stock options, that have been granted under shareholder-approved L3Harris SIPs. Option exercise prices are equal to or greater than the fair market value of our common stock on the date the options are granted, using the closing stock price of our common stock. Options may be exercised for a period of ten years after the date of grant, and options, other than performance stock options, generally become exercisable in installments, which are typically 33.3% one year from the grant date, 33.3% two years from the grant date and 33.3% three years from the grant date. In certain instances, vesting and exercisability are also subject to performance criteria. The fair value as of the grant date of each option award was determined using the Black-Scholes-Merton option-pricing model which uses assumptions noted in the following table. Expected volatility over the expected term of the options is based on implied volatility from traded options on our common stock and the historical volatility of our stock price. The expected term of the options is based on historical observations of our common stock, considering average years to exercise for all options exercised and average years to cancellation for all options canceled, as well as average years remaining for vested outstanding options, which is calculated based on the weighted-average of these three inputs. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. A summary of the assumptions used in determining the fair value of the stock option grants under our L3Harris SIPs is as follows: Fiscal Year Ended December 30, 2022 December 31, 2021 January 1, 2021 Expected dividends 2.00% 1.99% 1.55% Expected volatility 29.09% 31.71% 22.74% Risk-free interest rate range 1.63% - 4.27% 0.75% 0.89% Expected term (years) 5.02 5.05 5.04 A summary of stock option activity under our L3Harris SIPs as of December 30, 2022 and changes during fiscal 2022 is as follows: Shares Weighted Weighted Aggregate Stock options outstanding at December 31, 2021 3,529,088 $ 150.68 Granted 390,347 $ 231.89 Exercised (469,241) $ 120.58 Forfeited or expired (144,065) $ 196.26 Stock options outstanding at December 30, 2022 3,306,129 $ 162.56 5.97 $ 160 Stock options exercisable at December 30, 2022 2,620,411 $ 150.11 5.30 $ 153 The weighted-average grant-date fair value per share was $53.66, $42.16 and $34.49 for options granted in fiscal 2022, 2021 and 2020, respectively. The total intrinsic value of options at the time of exercise was $56 million, $173 million and $103 million for options exercised in fiscal 2022, 2021 and 2020, respectively. A summary of the status of our nonvested stock options at December 30, 2022 and changes during fiscal 2022 is as follows: Shares Weighted-Average Nonvested stock options at December 31, 2021 1,519,321 $ 38.79 Granted 390,347 $ 53.66 Vested/forfeited, net (1,223,950) $ 38.91 Nonvested stock options at December 30, 2022 685,718 $ 46.76 As of December 30, 2022, there was $20 million of total unrecognized compensation expense related to nonvested stock options granted under our L3Harris SIPs. This expense is expected to be recognized over a weighted-average period of 1.92 years. The total fair value of stock options that vested in fiscal 2022 was $42 million and $6 million in fiscal 2021. No stock options vested in fiscal 2020. Restricted Stock and Restricted Stock Unit Awards The following information relates to awards of restricted stock and restricted stock units that have been granted to employees and non-employee directors under our L3Harris SIPs. These awards are not transferable until vested and the restrictions generally lapse upon the achievement of continued employment (or board membership) over a specified time period. The fair value as of the grant date of these awards was based on the closing price of our common stock on the grant date and is amortized to compensation expense over the vesting period. At December 30, 2022, there were no shares of restricted stock and 673,495 restricted stock units outstanding which were payable in shares. A summary of the status of these awards at December 30, 2022 and changes during fiscal 2022 is as follows: Shares or Units Weighted-Average Restricted stock and restricted stock units outstanding at December 31, 2021 803,226 $ 192.33 Granted 330,379 $ 225.58 Vested (369,368) $ 198.15 Forfeited (90,742) $ 201.41 Restricted stock and restricted stock units outstanding at December 30, 2022 673,495 $ 211.16 As of December 30, 2022, there was $77 million of total unrecognized compensation expense related to these awards under our L3Harris SIPs. This expense is expected to be recognized over a weighted-average period of 2.67 years. The weighted-average grant date price per share or per unit was $225.58, $202.10 and $195.66 for awards granted in fiscal 2022, 2021 and 2020, respectively. The total fair value of these awards was $69 million, $19 million and $9 million for awards that vested in fiscal 2022, 2021 and 2020, respectively. Performance Share Unit Awards The following information relates to awards of performance share units that have been granted to employees under our L3Harris SIPs. Generally, these awards are subject to performance criteria, such as meeting predetermined operating income or earnings per share, return on invested capital targets and market conditions, such as total shareholder return, for a 3-year performance period. These awards also generally vest after a 3-year performance period. The final determination of the number of shares to be issued in respect of an award is made by our Board of Directors or a committee thereof. The fair value as of the grant date of awards with market conditions was determined based on a multifactor Monte Carlo valuation model that simulates our stock price and TSR relative to other companies in the S&P 500, less a discount to reflect the delay in payments of cash dividend-equivalents that are made only upon vesting. The fair value of these awards is amortized to compensation expense over the performance period if achievement of the performance measures is considered probable. A summary of the status of these awards at December 30, 2022 and changes during fiscal 2022 is as follows: Shares or Units Weighted-Average Grant Price Per Share or Unit (1) Performance share units outstanding at December 31, 2021 458,171 $ 210.18 Granted 163,660 $ 258.83 Adjustment (1) 148,950 $ 204.85 Vested (198,600) $ 204.85 Forfeited (47,838) $ 212.51 Performance share units outstanding at December 30, 2022 524,343 $ 224.94 ______________ (1) Adjustment for achievement of performance measures |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 16: EARNINGS PER SHARE We define EPS as income from continuing operations per common share attributable to L3Harris common shareholders divided by either our weighted average number of basic or diluted shares outstanding. The weighted average number of shares outstanding used to compute basic and diluted EPS are as follows: Fiscal Year Ended (In millions, except per share amounts) December 30, 2022 December 31, 2021 January 1, 2021 Basic weighted average common shares outstanding 191.8 201.3 214.0 Impact of dilutive share-based awards 1.7 1.9 1.9 Diluted weighted average common shares outstanding 193.5 203.2 215.9 Potential dilutive common shares primarily consist of employee stock options and restricted and performance unit awards. Income from continuing operations per diluted common share excludes the antidilutive impact of 0.3 million, 0.8 million and 1.3 million weighted average share-based awards outstanding in fiscal 2022, 2021 and 2020, respectively. |
RESEARCH AND DEVELOPMENT
RESEARCH AND DEVELOPMENT | 12 Months Ended |
Dec. 30, 2022 | |
Research and Development [Abstract] | |
RESEARCH AND DEVELOPMENT | NOTE 17: RESEARCH AND DEVELOPMENT Company-sponsored R&D costs are expensed as incurred and are included in the “Engineering, selling and administrative expenses” line item in our Consolidated Statement of Operations. These costs were $603 million, $692 million and $684 million in fiscal 2022, 2021, and 2020, respectively. Customer-sponsored R&D costs are incurred pursuant to contractual arrangements, principally U.S. Government-sponsored contracts requiring us to provide a product or service meeting certain defined performance or other specifications (such as designs), and such contractual arrangements are accounted for principally by the POC cost-to-cost revenue recognition method. Customer-sponsored R&D is included in the “cost of product sales and services” line item in our Consolidated Statement of Operations. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 30, 2022 | |
Leases [Abstract] | |
LEASE COMMITMENTS | NOTE 18: LEASE COMMITMENTS Our operating and finance leases at December 30, 2022 and December 31, 2021 primarily consisted of real estate leases for office space, warehouses, manufacturing, research and development facilities, tower space and land and equipment leases. The components of lease costs are as follows: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Operating lease cost $ 151 $ 172 $ 176 Short-term and equipment lease cost 21 20 7 Variable lease cost 25 20 25 Other, net (1) 6 3 1 Total lease cost $ 203 $ 215 $ 209 ______________ (1) Consists of finance amortization and interest costs as well as sublease income. Lease Impairment — Fiscal 2021 As discussed in more detail in Note 10: Intangible Assets in these Notes, during the quarter ended July 2, 2021, we tested the CTS reporting unit for potential impairment of the long-lived assets, including identifiable assets and property, plant and equipment, and recorded a $145 million non-cash charge for the impairment of CTS long-lived assets, including $19 million for impairment of ROU assets, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2021. Lease Impairment — Fiscal 2020 During fiscal 2020, as discussed in more detail in Note 9: Goodwill in these Notes, in conjunction with, and in advance of, the tests of goodwill related to our Commercial Aviation Solutions reporting unit, we recorded a $257 million non-cash impairment charge for long lived assets, including $31 million for impairment of ROU assets. Additionally, in connection with COVID restructuring actions, we recognized $5 million of non-cash impairment charges for ROU assets associated with consolidated facilities. These impairments are included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2020. Sale and Leaseback Transaction — Fiscal 2020 On November 24, 2020, we completed a sale and leaseback transaction of a parcel of land and manufacturing facility located in Los Angeles, California for $92 million (net cash proceeds of $66 million after $2 million of closing costs and $24 million for a residual value guarantee payment). The lease had a maximum term of sixteen months (including two options to extend the lease by one month). Due to its short term nature relative to the property’s remaining economic life, the lease is accounted for as an operating lease. We recognized a pre-tax gain on this sale and leaseback transaction of $22 million, which is included in the “Engineering, selling and administrative expenses” line item in our Consolidated Statement of Operations for fiscal 2020. Supplemental operating and finance lease balance sheet information at December 30, 2022 and December 31, 2021 is as follows: (In millions) December 30, 2022 December 31, 2021 Operating Leases Operating lease ROU assets $ 756 $ 769 Other accrued items 121 109 Operating lease liabilities 741 768 Total operating lease liabilities $ 862 $ 877 Finance Leases Property, plant and equipment $ 170 $ 163 Accumulated amortization (15) (9) Property, plant and equipment, net $ 155 $ 154 Current portion of long-term debt $ 5 $ 4 Long-term debt 165 157 Total finance lease liabilities $ 170 $ 161 Other supplemental lease information for fiscal 2022 and 2021 is as follows: Fiscal Year Ended (In millions, except lease term and discount rate) December 30, 2022 December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities Net cash provided by operating activities - operating lease payments $ 148 $ 154 Net cash provided by operating activities - finance lease interest payments 5 5 Net cash used in financing activities - finance lease obligation payments 4 3 Assets obtained in exchange for new lease obligations ROU assets obtained with operating leases $ 123 $ 260 Property, plant and equipment obtained with finance leases 20 120 Weighted average remaining lease term (in years) Operating leases 9.3 9.8 Finance leases 21.3 23.8 Weighted average discount rate Operating leases 3.5 % 3.7 % Finance leases 3.4 % 3.1 % Maturities under non-cancelable operating and finance leases at December 30, 2022 were as follows: (In millions) Operating Leases Finance Leases 2023 $ 145 $ 11 2024 143 11 2025 118 11 2026 89 11 2027 82 10 Thereafter 420 187 Total future lease payments required (1) 997 241 Less: imputed interest 135 71 Total $ 862 $ 170 _______________ (1) On December 30, 2022, we had additional future payments on leases of $12 million that had not yet commenced. These leases will commence in 2023, and have lease terms of 7 years to 15 years. |
LEASE COMMITMENTS | NOTE 18: LEASE COMMITMENTS Our operating and finance leases at December 30, 2022 and December 31, 2021 primarily consisted of real estate leases for office space, warehouses, manufacturing, research and development facilities, tower space and land and equipment leases. The components of lease costs are as follows: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Operating lease cost $ 151 $ 172 $ 176 Short-term and equipment lease cost 21 20 7 Variable lease cost 25 20 25 Other, net (1) 6 3 1 Total lease cost $ 203 $ 215 $ 209 ______________ (1) Consists of finance amortization and interest costs as well as sublease income. Lease Impairment — Fiscal 2021 As discussed in more detail in Note 10: Intangible Assets in these Notes, during the quarter ended July 2, 2021, we tested the CTS reporting unit for potential impairment of the long-lived assets, including identifiable assets and property, plant and equipment, and recorded a $145 million non-cash charge for the impairment of CTS long-lived assets, including $19 million for impairment of ROU assets, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2021. Lease Impairment — Fiscal 2020 During fiscal 2020, as discussed in more detail in Note 9: Goodwill in these Notes, in conjunction with, and in advance of, the tests of goodwill related to our Commercial Aviation Solutions reporting unit, we recorded a $257 million non-cash impairment charge for long lived assets, including $31 million for impairment of ROU assets. Additionally, in connection with COVID restructuring actions, we recognized $5 million of non-cash impairment charges for ROU assets associated with consolidated facilities. These impairments are included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2020. Sale and Leaseback Transaction — Fiscal 2020 On November 24, 2020, we completed a sale and leaseback transaction of a parcel of land and manufacturing facility located in Los Angeles, California for $92 million (net cash proceeds of $66 million after $2 million of closing costs and $24 million for a residual value guarantee payment). The lease had a maximum term of sixteen months (including two options to extend the lease by one month). Due to its short term nature relative to the property’s remaining economic life, the lease is accounted for as an operating lease. We recognized a pre-tax gain on this sale and leaseback transaction of $22 million, which is included in the “Engineering, selling and administrative expenses” line item in our Consolidated Statement of Operations for fiscal 2020. Supplemental operating and finance lease balance sheet information at December 30, 2022 and December 31, 2021 is as follows: (In millions) December 30, 2022 December 31, 2021 Operating Leases Operating lease ROU assets $ 756 $ 769 Other accrued items 121 109 Operating lease liabilities 741 768 Total operating lease liabilities $ 862 $ 877 Finance Leases Property, plant and equipment $ 170 $ 163 Accumulated amortization (15) (9) Property, plant and equipment, net $ 155 $ 154 Current portion of long-term debt $ 5 $ 4 Long-term debt 165 157 Total finance lease liabilities $ 170 $ 161 Other supplemental lease information for fiscal 2022 and 2021 is as follows: Fiscal Year Ended (In millions, except lease term and discount rate) December 30, 2022 December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities Net cash provided by operating activities - operating lease payments $ 148 $ 154 Net cash provided by operating activities - finance lease interest payments 5 5 Net cash used in financing activities - finance lease obligation payments 4 3 Assets obtained in exchange for new lease obligations ROU assets obtained with operating leases $ 123 $ 260 Property, plant and equipment obtained with finance leases 20 120 Weighted average remaining lease term (in years) Operating leases 9.3 9.8 Finance leases 21.3 23.8 Weighted average discount rate Operating leases 3.5 % 3.7 % Finance leases 3.4 % 3.1 % Maturities under non-cancelable operating and finance leases at December 30, 2022 were as follows: (In millions) Operating Leases Finance Leases 2023 $ 145 $ 11 2024 143 11 2025 118 11 2026 89 11 2027 82 10 Thereafter 420 187 Total future lease payments required (1) 997 241 Less: imputed interest 135 71 Total $ 862 $ 170 _______________ (1) On December 30, 2022, we had additional future payments on leases of $12 million that had not yet commenced. These leases will commence in 2023, and have lease terms of 7 years to 15 years. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 19: DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, we are exposed to global market risks, including the effect of changes in foreign currency exchange rates and changes in interest rates. We use derivative instruments to manage our exposure to such risks and formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking hedge transactions. We also may enter into derivative instruments that are not designated as hedges and do not qualify for hedge accounting. We recognize all derivatives in our Consolidated Balance Sheet at fair value. We do not hold or issue derivatives for speculative trading purposes. Exchange Rate Risk — Cash Flow Hedges To manage our exposure to currency risk and market fluctuation risk associated with anticipated cash flows that are probable of occurring in the future, we implement cash flow hedges. More specifically, we use foreign currency forward contracts and options to hedge off-balance sheet future foreign currency commitments, including purchase commitments to suppliers, future committed sales to customers and intersegment transactions. These derivatives are used to hedge currency exposures from cash flows anticipated across our business segments. We also hedge U.S. Dollar payments to suppliers to maintain our anticipated profit margins in our international operations. These derivatives have only nominal intrinsic value at the time of purchase and have a high degree of correlation to the anticipated cash flows they are designated to hedge. Hedge effectiveness is determined by the correlation of the anticipated cash flows from the hedging instruments and the anticipated cash flows from the future foreign currency commitments through the maturity dates of the derivatives used to hedge these cash flows. These financial instruments are marked-to-market using forward prices and fair value quotes with the offset to other comprehensive income (loss) and are categorized in Level 2 of the fair value hierarchy. Gains and losses in accumulated other comprehensive loss are reclassified to earnings when the related hedged item is recognized in earnings. The cash flow impact of our derivatives is included in the same category in our Consolidated Statement of Cash Flows as the cash flows of the related hedged items. Notional amounts are used to measure the volume of foreign currency forward contracts and do not represent exposure to foreign currency losses. At December 30, 2022, we had open foreign currency forward contracts with an aggregate notional amount of $275 million, hedging certain forecasted transactions denominated in Canadian Dollars, U.S. Dollars, British Pounds and Euros. At December 31, 2021, we had open foreign currency forward contracts with an aggregate notional amount of $328 million, hedging certain forecasted transactions denominated in U.S. Dollars, Canadian Dollars, British Pounds, Euros and Australian Dollars. At December 30, 2022, our foreign currency forward contracts had maturities through 2025. The table below presents the fair values of our derivatives designated as foreign currency hedging instruments in our Consolidated Balance Sheet at December 30, 2022 and December 31, 2021: (In millions) December 30, 2022 December 31, 2021 Derivatives designated as hedging instruments: Foreign currency forward contracts Other current assets $ 3 $ 2 Other non-current assets 1 1 Other accrued items 10 5 Other long-term liabilities 1 — Net unrealized gains and losses recognized in other comprehensive income from foreign currency derivatives designated as cash flow hedges were $22 million and $12 million in fiscal 2022 and fiscal 2020, respectively, and were not material in fiscal 2021. Net gains and losses reclassified from AOCI in to earnings from foreign currency derivatives designated as cash flow hedges were $11 million and $20 million in fiscal 2022 and 2021, respectively, and were not material in fiscal 2020. Gains and losses from foreign currency derivatives designated as cash flow hedges are included in the line item in our Consolidated Statement of Operations associated with the hedged transaction, with the exception of the losses resulting from discontinued cash flow hedges, which are included in the “Engineering, selling and administrative expenses” line item in our Consolidated Statement of Operations. At December 30, 2022, the estimated amount of existing losses to be reclassified into earnings within the next twelve months was $8 million. Interest-Rate Risk — Cash Flow Hedges On November 22, 2022, we established a new $2.25 billion, three-year senior unsecured term loan facility by entering into the Term Loan 2025 as described in Note 13: Debt in these Notes . We entered into a 1-year interest rate cap derivative to hedge the variability of the cash flows attributable to the changes in the 1-month Term SOFR Cap Rate, effective December 14, 2022. The fair value of our derivatives designated as interest rate hedges was $15 million and was included in the “Other current assets” line item in our Consolidated Balance Sheet at December 30, 2022. On November 25, 2020, in order to fund our optional redemption of the 4.95% 2021 Notes as described in Note 13: Debt in these Notes, we completed the issuance of $650 million in aggregate principal amount of the 1.80% 2031 Notes. In connection with the L3Harris Merger, we assumed two treasury locks that were initiated in January 2019 to hedge against fluctuations in interest payments due to changes in the benchmark interest rate (10-year U.S. Treasury rate) associated with the anticipated issuance of debt to redeem or repay the 4.95% 2021 Notes. These treasury locks were terminated as planned in connection with our issuance of the 1.80% 2031 Notes during the quarter ended January 1, 2021, and because interest rates decreased during the period of the treasury locks, we made a cash payment to our counterparty and recorded an after-tax loss of $58 million in the “Accumulated other comprehensive loss” line item of our Consolidated Balance Sheet. The accumulated other comprehensive loss balance will be amortized to interest expense over the life of the 1.80% 2031 Notes. We classified the cash outflow from the termination of these treasury locks as cash used in financing activities in our Consolidated Statement of Cash Flows. Credit Risk We are exposed to the risk of credit losses from non-performance by counterparties to the financial instruments discussed above, but we do not expect any of the counterparties to fail to meet their obligations. To manage credit risks, we select counterparties based on credit ratings, limit our exposure to any single counterparty under defined guidelines and monitor the market position with each counterparty. |
NON-OPERATING INCOME, NET
NON-OPERATING INCOME, NET | 12 Months Ended |
Dec. 30, 2022 | |
Nonoperating Income (Expense) [Abstract] | |
NON-OPERATING INCOME, NET | NOTE 20: NON-OPERATING INCOME, NET The components of Non-operating income, net were as follows: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Non-service FAS pension income (1) $ 441 $ 445 $ 389 Equity investment (losses) gains, net (18) 5 — Impairment of equity method investment — (35) — Other, net 2 24 12 $ 425 $ 439 $ 401 _______________ (1) Non-service cost components of net periodic benefit income recorded in the “Non-operating income, net” line item in our Consolidated Statement of Operations include interest cost, expected return on plan assets, amortization of net actuarial gain and effect of curtailments or settlements under our pension and postretirement benefit plans. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 30, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 21: ACCUMULATED OTHER COMPREHENSIVE LOSS The components of AOCI are summarized below: (In millions) Foreign currency translation Net unrealized losses on hedging derivatives Unrecognized postretirement obligations Total AOCI Balance at December 31, 2021 $ (118) $ (89) $ 61 $ (146) Other comprehensive loss, before income taxes (124) (10) (33) (167) Income taxes 5 2 7 14 Other comprehensive loss before reclassifications to earnings, net of income taxes (119) (8) (26) (153) Losses (gains) reclassified to earnings (1) — 22 (9) 13 Income taxes — (4) 2 (2) Losses (gains) reclassified to earnings, net of income taxes — 18 (7) 11 Other comprehensive (loss) income, net of income taxes (119) 10 (33) (142) Balance at December 30, 2022 $ (237) $ (79) $ 28 $ (288) Balance at January 1, 2021 $ (58) $ (80) $ (701) $ (839) Other comprehensive (loss) income, before income taxes (63) (4) 1,013 946 Income taxes — 1 (255) (254) Other comprehensive (loss) income before reclassifications to earnings, net of income taxes (63) (3) 758 692 Losses (gains) reclassified to earnings (1) 3 (8) 6 1 Income taxes — 2 (2) — Losses (gains) reclassified to earnings, net of income taxes 3 (6) 4 1 Other comprehensive (loss) income, net of income taxes (60) (9) 762 693 Balance at December 31, 2021 $ (118) $ (89) $ 61 $ (146) _______________ (1) Losses (gains) reclassified to earnings are included in the “Revenue from product sales and services,” “Business divestiture-related gains (losses), net,” “Interest expense” and “Non-operating income, net ” line items in our Consolidated Statement of Operations. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 22: INCOME TAXES Income Tax Provision The provisions for current and deferred income taxes are summarized as follows: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Current: United States $ 633 $ 415 $ 337 International 82 70 76 State and local 98 65 45 813 550 458 Deferred: United States (523) (55) (150) International (61) (34) (73) State and local (17) (21) (1) (601) (110) (224) $ 212 $ 440 $ 234 The total income tax provision above was attributable to continuing operations. A reconciliation of the U.S. statutory income tax rate to our effective income tax rate is as follows: Fiscal Year Ended December 30, 2022 December 31, 2021 January 1, 2021 U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % State taxes 2.2 1.8 3.2 International income — 0.4 0.4 Non-deductible goodwill impairment 14.2 0.6 5.8 Research and development tax credit (13.0) (5.9) (9.2) FDII deduction (5.1) (1.4) (1.3) Change in valuation allowance 0.1 0.9 0.5 Impact of divestitures and reorganizations (1.3) 4.1 — Equity-based compensation (1) (0.2) (1.1) (1.0) Settlement of tax audits (0.7) (1.1) (1.8) Other items (0.5) — 0.1 Effective income tax rate 16.7 % 19.3 % 17.7 % _______________ (1) Includes non-deductible equity-based compensation and excess tax benefits from equity-based compensation. As of December 30, 2022, we estimate our outside basis difference in foreign subsidiaries that are considered indefinitely reinvested to be approximately $1.0 billion. The outside basis difference is comprised predominantly of purchase accounting adjustments and to a lesser extent, undistributed earnings and other equity adjustments. In the event of a disposition of the foreign subsidiaries or a distribution, we may be subject to incremental U.S. income taxes, subject to an adjustment for foreign tax credits, and withholding taxes or income taxes payable to the foreign jurisdictions. As of December 30, 2022, the determination of the amount of unrecognized deferred tax liability related to the outside basis difference is not practicable. Tax Law Changes On August 16, 2022, President Biden signed into law the IRA which includes implementation of a new 15% CAMT, a 1% excise tax on stock repurchases and tax incentives for energy and climate initiatives. These provisions are effective beginning January 1, 2023, and we expect them to be immaterial to our financial results, financial position and cash flows. Beginning in fiscal 2022, pursuant to provisions in the TCJA, research and experimental expenditures must be capitalized and amortized over five years instead of deductible when incurred. Deferred Income Tax Assets (Liabilities) The components of deferred income tax assets (liabilities) were as follows: (In millions) December 30, 2022 December 31, 2021 Deferred tax assets: Accruals $ 227 $ 288 Tax loss and credit carryforwards 194 174 Pension and other post-employment benefits 13 107 Operating lease obligation 239 245 Capitalized research and experimental expenditures 646 — Other 359 329 Valuation allowance (1) (243) (257) Deferred tax assets, net 1,435 886 Deferred tax liabilities: Property, plant and equipment (167) (103) Acquired intangibles (1,566) (1,663) Operating lease right-of-use asset (210) (218) Other (138) (161) Deferred tax liabilities (2,081) (2,145) Net deferred tax liabilities $ (646) $ (1,259) _______________ (1) The valuation allowance has been established to offset certain domestic and foreign deferred tax assets due to uncertainty regarding our ability to realize them in the future. The net change in our valuation allowance in fiscal 2022 and 2021 was a decrease of $14 million and an increase of $92 million, respectively. Net deferred tax assets (liabilities) were classified as follows in our Consolidated Balance Sheet: (In millions) December 30, 2022 December 31, 2021 Deferred income tax assets $ 73 $ 85 Deferred income tax liabilities (719) (1,344) Net deferred tax liabilities $ (646) $ (1,259) Tax loss and credit carryforwards at December 30, 2022 have expiration dates ranging from less than one year to no expiration date. A significant portion of the carryforwards are either indefinite or begin expiring 2035. The tax-effected amounts of Federal, international and state and local operating loss carryforwards at December 30, 2022 were $5 million, $70 million and $7 million, respectively. The tax-effected amounts of Federal, international and state and local capital loss carryforwards were not material at December 30, 2022. The amounts of Federal, international and state and local credit carryforwards at December 30, 2022 were $5 million, $8 million and $103 million, respectively. Income from continuing operations before income taxes of international subsidiaries was $95 million and $29 million in fiscal 2022 and 2021, respectively, and loss from continuing operations before income taxes of international subsidiaries was $101 million in fiscal 2020. We paid $309 million, $358 million and $394 million in income taxes, net of refunds received, in fiscal 2022, 2021 and 2020, respectively. Tax Uncertainties A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Balance at beginning of period $ 587 $ 542 $ 438 Additions based on tax positions taken during current period 124 115 60 Additions based on tax positions taken during prior periods 4 11 21 Additions for tax positions related to acquired entities — — 116 Decreases based on tax positions taken during prior periods (76) (64) (82) Decreases from lapse in statutes of limitations (6) (15) (3) Decreases from settlements (20) (2) (8) Balance at end of period $ 613 $ 587 $ 542 As of December 30, 2022, we had $613 million of unrecognized tax benefits, of which $486 million would favorably impact our future tax rates in the event that the tax benefits are eventually recognized. As of December 31, 2021, we had $587 million of unrecognized tax benefits, of which $488 million would favorably impact our future tax rates in the event that the tax benefits are eventually recognized. We recognize accrued interest and penalties related to unrecognized tax benefits as part of our income tax expense. We recognized interest and penalties of $12 million, $3 million and $14 million in fiscal 2022, 2021 and 2020, respectively. We had accrued $59 million for the potential payment of interest and penalties as of December 30, 2022 (and this amount was not included in the $613 million of unrecognized tax benefits balance at December 30, 2022 shown above). We had accrued $47 million for the potential payment of interest and penalties as of December 31, 2021 (and this amount was not included in the $587 million of unrecognized tax benefits balance at December 31, 2021 shown above). We file numerous separate and consolidated income tax returns reporting our financial results and, where appropriate, those of our subsidiaries and affiliates, in the U.S. Federal jurisdiction and various state, local and foreign jurisdictions. Pursuant to the Compliance Assurance Process, the IRS is examining the Harris Federal tax returns for fiscal 2017, 2018, 2019 and 2020 and refund claims related to fiscal 2010 through 2016. In addition, legacy L3’s Federal tax returns for calendar years 2017 and 2018 are currently under IRS examination and refund claims related to calendar years 2012, 2013, 2015 and 2016 have been filed with the IRS. We are currently under examination or contesting proposed adjustments by various state and international tax authorities for fiscal years ranging from 2013 through 2020. It is reasonably possible that there could be a significant decrease or increase to our unrecognized tax benefit balance during the course of the next twelve months as these examinations continue, other tax examinations commence or various statutes of limitations expire. An estimate of the range of possible changes is not practicable for the remaining unrecognized tax benefits because of the significant number of jurisdictions in which we do business and the number of open tax periods under various stages of examination. |
BACKLOG
BACKLOG | 12 Months Ended |
Dec. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
BACKLOG | NOTE 6: CONTRACT ASSETS AND CONTRACT LIABILITIES Contract assets include unbilled amounts typically resulting from revenue recognized exceeding amounts billed to customers for contracts utilizing the POC cost-to-cost revenue recognition method. We bill customers as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, upon achievement of contractual milestones or upon deliveries and, in certain arrangements, the customer may withhold payment of a small portion of the contract price until contract completion. Contract liabilities include advance payments and billings in excess of revenue recognized, including deferred revenue associated with extended product warranties. Contract assets and liabilities are reported on a contract-by-contract basis at the end of each reporting period. Contract assets and liabilities in fiscal 2022 were impacted primarily by the timing of contractual billing milestones. Contract assets and contract liabilities are summarized below: (In millions) December 30, 2022 December 31, 2021 Contract assets $ 2,987 $ 3,021 Contract liabilities, current (1,400) (1,297) Contract liabilities, non-current (1) (117) (107) Net contract assets $ 1,470 $ 1,617 _______________ (1) The non-current portion of contract liabilities is included as a component of the “Other long-term liabilities” line item in our Consolidated Balance Sheet. The components of contract assets are summarized below: (In millions) December 30, 2022 December 31, 2021 Unbilled contract receivables, gross $ 4,629 $ 4,921 Unliquidated progress payments and advances (1,642) (1,900) Contract assets $ 2,987 $ 3,021 In fiscal 2022, 2021 and 2020, we recognized $1,057 million, $930 million and $974 million, respectively , NOTE 23: BACKLOG Backlog, which is the equivalent of our remaining performance obligations, represents the future revenue we expect to recognize as we perform on our current contracts. Backlog comprises both funded backlog (i.e., firm orders for which funding is authorized and appropriated) and unfunded backlog. Backlog excludes unexercised contract options and potential orders under ordering-type contracts, such as IDIQ contracts. At December 30, 2022, our ending backlog was $22.3 billion. We expect to recognize approximately 55% of the revenue associated with this backlog by the end of 2023 and approximately 75% by the end of 2024, with the remainder to be recognized thereafter. At December 31, 2021, our ending backlog was $21.1 billion. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 30, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | NOTE 24: BUSINESS SEGMENTS We structure our operations primarily around the products, systems and services we sell and the markets we serve and report our financial results in the following three reportable segments: • Integrated Mission Systems: including multi-mission ISR systems; integrated electrical and electronic systems for maritime platforms; advanced EO/IR solutions; fuzing and ordnance systems; commercial aviation products; and commercial pilot training operations; • Space & Airborne Systems: including space payloads, sensors and full-mission solutions; classified intelligence and cyber; avionics; electronic warfare; and mission networks for air traffic management operations; and • Communication Systems: including tactical communications with global communications solutions; broadband communications; integrated vision solutions; and public safety radios, system applications and equipment. Organizational Structure Effective January 1, 2022, we streamlined our business segments from four business segments to three business segments. As a result of the segment reorganization, the Aviation Systems segment was eliminated as a business segment. As part of our new business segment structure, the ongoing operations that had been part of our former Aviation Systems segment were integrated into the remaining segments. Fuzing and ordnance systems, commercial aviation products and commercial pilot training operations were moved into our IMS segment; and mission networks for air traffic management operations was moved into our SAS segment. During fiscal 2022, we adjusted our reporting within our IMS segment to better align our businesses and transferred our precision engagement business, which includes fuzing and ordnance systems, from ADG to Electro Optical. See Note 4: Business Divestitures and Asset Sales in these Notes and elsewhere in these Notes for information relating to businesses divested in fiscal 2022, 2021 and 2020. Business Segment Financial Information Segment revenue, segment operating income and a reconciliation of segment operating income to total income from continuing operations before income taxes are as follows: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Revenue Integrated Mission Systems $ 6,916 $ 7,042 $ 6,793 Space & Airborne Systems 6,060 5,965 5,823 Communication Systems 4,217 4,287 4,402 Other non-reportable businesses — 683 1,347 Corporate eliminations (131) (163) (171) Total Revenue $ 17,062 $ 17,814 $ 18,194 Income from Continuing Operations before Income Taxes Segment Operating Income: Integrated Mission Systems $ 424 $ 866 $ 205 Space & Airborne Systems 735 761 762 Communication Systems 667 1,043 1,035 Other non-reportable businesses — 104 160 1,826 2,774 2,162 Unallocated Items: Unallocated corporate department expense, net (1) 25 (51) (69) Amortization of acquisition-related intangibles (2) (605) (627) (709) L3Harris Merger-related integration expenses (90) (134) (140) Acquisition-related transaction and integration expenses (9) — — Pre-acquisition and other divestiture-related expenses (63) (71) 10 Additional cost of sales related to fair value step-up in inventory sold — — (31) Business divestiture-related gains (losses), net — 220 (51) Gain on sale of asset group 8 — — Impairment of goodwill and other assets (3) — (125) (132) Charges for severance and other termination costs (29) — — Charges related to an additional pre-merger legal contingency (31) — — FAS/CAS operating adjustment (4) 95 123 135 (699) (665) (987) Non-operating income, net 425 439 401 Net interest expense (279) (265) (254) Total income from continuing operations before income taxes $ 1,273 $ 2,283 $ 1,322 _______________ (1) Includes certain corporate-level expenses that are not included in management’s evaluation of segment operating performance. For fiscal 2022, also includes $29 million of income from our deferred compensation plans and $13 million of income from GHG emission reduction projects. (2) Includes amortization of identifiable intangible assets acquired in connection with business combinations. Because our acquisitions benefit the entire Company as opposed to any individual segment, the amortization of identifiable intangible assets acquired was not allocated to any segment. (3) For fiscal 2021, includes: (i) a $62 million non-cash goodwill impairment charge related to our CPS business and (ii) a $63 million non-cash intangible asset impairment charge related to our CTS reporting unit. For fiscal 2020, includes: (i) a $113 million non-cash intangible asset impairment charge related to our Commercial Aviation Solutions reporting unit and (ii) a $14 million non-cash goodwill impairment charge related to the then-potential divestiture of VSE disposal group, as well as a $5 million non-cash goodwill impairment charge related to the divestiture of the Applied Kilovolts business. See Note 9: Goodwill and Note 10: Intangible Assets in these Notes for additional information. (4) Represents the difference between the service cost component of FAS pension and OPEB income and total CAS pension and OPEB cost and replaces the “Pension adjustment” line item previously presented, which included the non-service components of FAS pension and OPEB income. See Net FAS/CAS operating adjustment table below. The table below is a reconciliation of the FAS/CAS operating adjustment: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 FAS pension service cost $ (46) $ (68) $ (67) Less: CAS pension cost (141) (191) (202) FAS/CAS operating adjustment 95 123 135 Non-service FAS pension income 441 445 388 FAS/CAS pension adjustment, net (1) $ 536 $ 568 $ 523 _______________ (1) FAS/CAS pension adjustment, net excludes net settlement and curtailment losses recognized in fiscal 2021. See Note 14: Pension and Other Postretirement Benefits in these Notes for additional information on net settlements and curtailments and see Note 1: Significant Accounting Policies in these Notes for additional information regarding our FAS/CAS pension adjustment accounting policy. Disaggregation of Revenue We disaggregate revenue for all three business segments by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Fiscal Year Ended December 30, 2022 December 31, 2021 January 1, 2021 (In millions) IMS SAS CS IMS SAS CS IMS SAS CS Revenue By Customer Relationship Prime contractor $ 4,488 $ 3,818 $ 2,829 $ 4,738 $ 3,679 $ 2,886 $ 4,470 $ 3,425 $ 3,054 Subcontractor 2,367 2,217 1,343 2,243 2,274 1,347 2,273 2,380 1,304 Intersegment 61 25 45 61 12 54 50 18 44 $ 6,916 $ 6,060 $ 4,217 $ 7,042 $ 5,965 $ 4,287 $ 6,793 $ 5,823 $ 4,402 Revenue By Contract Type Fixed-price (1) $ 5,161 $ 3,710 $ 3,552 $ 5,316 $ 3,697 $ 3,631 $ 5,035 $ 3,612 $ 3,736 Cost-reimbursable 1,694 2,325 620 1,665 2,256 602 1,708 2,193 622 Intersegment 61 25 45 61 12 54 50 18 44 $ 6,916 $ 6,060 $ 4,217 $ 7,042 $ 5,965 $ 4,287 $ 6,793 $ 5,823 $ 4,402 Revenue By Geographical Region United States $ 5,096 $ 5,323 $ 2,735 $ 5,102 $ 5,250 $ 3,001 $ 5,347 $ 5,022 $ 3,138 International 1,759 712 1,437 $ 1,879 703 1,232 1,396 783 1,220 Intersegment 61 25 45 $ 61 12 54 50 18 44 $ 6,916 $ 6,060 $ 4,217 $ 7,042 $ 5,965 $ 4,287 $ 6,793 $ 5,823 $ 4,402 _______________ (1) Includes revenue derived from time-and-materials contracts. Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Geographical Information for Continuing Operations Revenue from U.S. operations $ 15,373 $ 16,234 $ 16,998 Revenue from international operations 1,689 1,580 1,196 Our products and systems are produced principally in the U.S. with international revenue derived primarily from exports. No revenue earned from any individual foreign country exceeded 5% of our total revenue in fiscal 2022, 2021 or 2020. Sales made to U.S. Government customers, including foreign military sales funded through the U.S. Government, whether directly or through prime contractors, by all segments as a percentage of total revenue were 74%, 75% and 78% in fiscal 2022, 2021 and 2020 , respectively. Revenue from services in fiscal 2022 was 37%, 27% and 19% of total revenue in our IMS, SAS and CS segments, respectively. Revenue from products and services where the end consumer is located outside the U.S., including foreign military sales funded through the U.S. Government, whether directly or through prime contractors, was $3.9 billion (23% of our revenue), $3.9 billion (22% of our revenue) and $3.7 billion (20% of our revenue) in fiscal 2022 , 2021 and 2020, respectively. Export revenue and revenue from international operations in fiscal 2022 was principally from the EMEA and APAC regions and Canada. Assets by Business Segment Total assets by business segment are as follows: (In millions) December 30, 2022 December 31, 2021 Total Assets Integrated Mission Systems $ 11,283 $ 11,830 Space & Airborne Systems 8,475 8,151 Communication Systems 5,800 6,035 Other non-reportable businesses — 3 Corporate (1) 7,966 8,690 $ 33,524 $ 34,709 _______________ (1) Identifiable intangible assets acquired in connection with business combinations were recorded as corporate assets because they benefited the entire Company as opposed to any individual segment. Identifiable intangible asset balances recorded as corporate assets were $6.0 billion and $6.6 billion at December 30, 2022 and December 31, 2021, respectively. Corporate assets also consisted of cash, income taxes receivable, deferred income taxes, deferred compensation plan investments, buildings and equipment, as well as any assets of businesses held for sale. Other selected financial information by business segment and geographical area is summarized below: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Capital Expenditures Integrated Mission Systems $ 61 $ 93 $ 108 Space & Airborne Systems 117 131 122 Communication Systems 36 56 58 Other non-reportable businesses — 4 16 Corporate 38 58 64 $ 252 $ 342 $ 368 Depreciation and Amortization Integrated Mission Systems $ 83 $ 98 $ 105 Space & Airborne Systems 105 103 100 Communication Systems 47 49 61 Other non-reportable businesses — 8 34 Corporate 703 709 732 $ 938 $ 967 $ 1,032 Geographical Information for Continuing Operations Long-lived assets of U.S. operations $ 1,896 $ 1,870 $ 1,949 Long-lived assets of international operations 208 231 153 In addition to depreciation and amortization expense related to property, plant and equipment, “Depreciation and Amortization” in the table above also includes $596 million, $624 million and $714 million of amortization related to identifiable intangible assets, debt premium, debt discount, debt issuance costs and other items in fiscal 2022 , 2021 and 2020 , respectively. |
LEGAL PROCEEDINGS AND CONTINGEN
LEGAL PROCEEDINGS AND CONTINGENCIES | 12 Months Ended |
Dec. 30, 2022 | |
Legal Proceedings And Contingencies [Abstract] | |
LEGAL PROCEEDINGS AND CONTINGENCIES | NOTE 25: LEGAL PROCEEDINGS AND CONTINGENCIES General From time to time, as a normal incident of the nature and kind of businesses in which we are or were engaged, various claims or charges are asserted and litigation or arbitration is commenced by or against us arising from or related to matters, including but not limited to: product liability; personal injury; patents, trademarks, trade secrets or other intellectual property; labor and employee disputes; commercial or contractual disputes; strategic acquisitions or divestitures; the prior sale or use of former products allegedly containing asbestos or other restricted materials; breach of warranty; or environmental matters. Claimed amounts against us may be substantial, but may not bear any reasonable relationship to the merits of the claim or the extent of any real risk of court or arbitral awards. We record accruals for losses related to those matters against us that we consider to be probable and that can be reasonably estimated. Gain contingencies, if any, are recognized when they are realized and legal costs generally are expensed when incurred. At December 30, 2022, our accrual for the potential resolution of lawsuits, claims or proceedings that we consider probable of being decided unfavorably to us was not material. Although it is not feasible to predict the outcome of these matters with certainty, it is reasonably possible that some lawsuits, claims or proceedings may be disposed of or decided unfavorably to us and in excess of the amounts currently accrued. Based on available information, in the opinion of management, settlements, arbitration awards and final judgments, if any, that are considered probable of being rendered against us in litigation or arbitration in existence at December 30, 2022 are reserved against or would not have a material adverse effect on our financial condition, results of operations, cash flows or equity. Tax Audits Our tax filings are subject to audit by taxing authorities in jurisdictions where we conduct or conducted business. These audits may result in assessments of additional taxes that are subsequently resolved with the authorities or ultimately through legal proceedings. We believe we have adequately accrued for any ultimate amounts that are likely to result from these audits; however, final assessments, if any, could be different from the amounts recorded in our Consolidated Financial Statements. Additional information regarding audits and examinations by taxing authorities of our tax filings is set forth in Note 22: Income Taxes in these Notes. U.S. Government Business We are engaged in supplying goods and services to various departments and agencies of the U.S. Government. We are therefore dependent on Congressional appropriations and administrative allotment of funds and may be affected by changes in U.S. Government policies. U.S. Government development and production contracts typically involve long lead times for design and development, are subject to significant changes in contract scheduling and may be unilaterally modified or canceled by the U.S. Government. Often these contracts call for successful design and production of complex and technologically advanced products or systems. We may participate in supplying goods and services to the U.S. Government as either a prime contractor or as a subcontractor to a prime contractor. Disputes may arise between the prime contractor and the U.S. Government or between the prime contractor and its subcontractors and may result in litigation or arbitration between the contracting parties. The Company remains subject to the administrative agreement with the Department of State. Generally, U.S. Government contracts are subject to procurement laws and regulations, including the FAR, which outline uniform policies and procedures for acquiring goods and services by the U.S. Government, and specific agency acquisition regulations that implement or supplement the FAR, such as the Defense Federal Acquisition Regulation Supplement. As a U.S. Government contractor, our contract costs are audited and reviewed on a continuing basis by the Defense Contract Audit Agency (“DCAA”). The DCAA also reviews the adequacy of, and a U.S. Government contractor’s compliance with, the contractor’s business systems and policies, including the contractor’s property, estimating, compensation and management information systems. In addition to these routine audits, from time to time, we may, either individually or in conjunction with other U.S. Government contractors, be the subject of audits and investigations by other agencies of the U.S. Government. These audits and investigations are conducted to determine if our performance and administration of our U.S. Government contracts are compliant with applicable contractual requirements and procurement and other applicable Federal laws and regulations, including ITAR and FCPA. These investigations may be conducted with or without our knowledge or cooperation. We are unable to predict the outcome of such investigations or to estimate the amounts of resulting claims or other actions that could be instituted against us or our officers or employees. Under present U.S. Government procurement laws and regulations, if indicted or adjudged in violation of procurement or other Federal laws, a contractor, such as us, or one or more of our operating divisions or subdivisions, could be subject to fines, penalties, repayments, or compensatory or treble damages. U.S. Government regulations also provide that certain findings against a contractor may lead to suspension or debarment from eligibility for awards of new U.S. Government contracts for a period of time to be determined by the U.S. Government. Suspension or debarment would have a material adverse effect on us because of our reliance on U.S. Government contracts. In addition, our export privileges could be suspended or revoked, which also would have a material adverse effect on us. For further discussion of risks relating to U.S. Government contracts, see “Item 1A. Risk Factors” of this Report. International As an international company, we are, from time to time, the subject of investigations relating to our international operations, including under U.S. export control laws (such as ITAR), the FCPA and other similar U.S. and international laws. In September 2019, we reached an administrative settlement with the Department of State to resolve alleged U.S. export control regulation violations. Under the terms of the settlement, we have committed to strengthen our trade compliance program under the supervision of a special compliance officer and will pay a civil penalty of $13 million over three years (with $6.5 million suspended on the condition of use for qualified remedial compliance measures). The settlement did not result in any debarment or limitation on export licensing. The settlement was paid in full during fiscal 2021. Environmental Matters We are subject to numerous U.S. Federal, state, local and international environmental laws and regulatory requirements and are involved from time to time in investigations or litigation of various potential environmental issues. We or companies we have acquired are responsible, or alleged to be responsible, for environmental investigation and/or remediation of multiple sites. These sites are in various stages of investigation and/or remediation and in some cases our liability is considered de minimis. Notices from the U.S. Environmental Protection Agency (“EPA”) or equivalent state or international environmental agencies allege that several sites formerly or currently owned and/or operated by us or companies we have acquired, and other properties or water supplies that may be or have been impacted from those operations, contain disposed or recycled materials or wastes and require environmental investigation and/or remediation. These sites include instances of being identified as a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act (commonly known as the “Superfund Act”) and/or equivalent state and international laws. For example, in June 2014, the U.S. Department of Justice, Environment and Natural Resources Division, notified several potentially responsible parties, including L3Harris, of potential responsibility for contribution to the environmental investigation and remediation of multiple locations in Alaska. In addition, in March 2016, the EPA notified over 100 potentially responsible parties, including L3Harris, of potential liability for the cost of remediation for the 8.3-mile stretch of the Lower Passaic River in New Jersey, estimated by the EPA to be $1.38 billion. During the fourth quarter of fiscal 2021, the EPA further announced an interim plan to remediate sediment in the upper nine miles of the of the Lower Passaic River with an estimated cost of $441 million. Although it is not feasible to predict the outcome of these environmental claims made against us, based on available information, in the opinion of our management, any payments we may be required to make as a result of environmental claims made against us in existence at December 30, 2022 are reserved against, covered by insurance or would not have a material adverse effect on our financial condition, results of operations, cash flows or equity. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 26: SUBSEQUENT EVENTS On January 3, 2023, we completed the acquisition of the TDL product line for a purchase price of $1.96 billion, subject to customary adjustments. The acquisition was financed through the Term Loan 2025, our new three-year senior unsecured term loan facility, which provides for term loans in up to two separate draws no later than June 30, 2023. Upon closing the TDL product line acquisition, we drew $2.0 billion on the Term Loan 2025. The Term Loan 2025 will bear interest at SOFR plus 0.10% plus an applicable margin, initially 1.250%, that varies based on the Senior Debt Ratings or the base rate, as described in L3Harris’ Current Report on Form 8-K filed with the SEC on August 4, 2022, plus an applicable margin, initially 0.250%, that varies based on the Senior Debt Ratings. See Note 13: Debt in these Notes for additional information on the Term Loan 2025. In connection with our obligations under the definitive agreement to acquire AJRD, on January 10, 2023 we filed our notification and report form with the Antitrust Division of the United States Department of Justice (the ”Antitrust Division”) and the U.S. Federal Trade Commission (the ‘‘FTC’’) as required under the HSR Act. on February 9, 2023, we withdrew our notification and report form filed on January 10, 2023 and resubmitted the form on February 13, 2023. Clearance under the HSR Act is a condition of closing the acquisition of AJRD. The applicable waiting period under the HSR Act will expire on March 15, 2023, unless terminated earlier or extended including by the issuance of a request for additional information and documentary materials by the Antitrust Division or FTC. See Note 3: Acquisitions in these Notes for further information on the acquisition of AJRD. |
SUBSEQUENT EVENTS_2
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 26: SUBSEQUENT EVENTS On January 3, 2023, we completed the acquisition of the TDL product line for a purchase price of $1.96 billion, subject to customary adjustments. The acquisition was financed through the Term Loan 2025, our new three-year senior unsecured term loan facility, which provides for term loans in up to two separate draws no later than June 30, 2023. Upon closing the TDL product line acquisition, we drew $2.0 billion on the Term Loan 2025. The Term Loan 2025 will bear interest at SOFR plus 0.10% plus an applicable margin, initially 1.250%, that varies based on the Senior Debt Ratings or the base rate, as described in L3Harris’ Current Report on Form 8-K filed with the SEC on August 4, 2022, plus an applicable margin, initially 0.250%, that varies based on the Senior Debt Ratings. See Note 13: Debt in these Notes for additional information on the Term Loan 2025. In connection with our obligations under the definitive agreement to acquire AJRD, on January 10, 2023 we filed our notification and report form with the Antitrust Division of the United States Department of Justice (the ”Antitrust Division”) and the U.S. Federal Trade Commission (the ‘‘FTC’’) as required under the HSR Act. on February 9, 2023, we withdrew our notification and report form filed on January 10, 2023 and resubmitted the form on February 13, 2023. Clearance under the HSR Act is a condition of closing the acquisition of AJRD. The applicable waiting period under the HSR Act will expire on March 15, 2023, unless terminated earlier or extended including by the issuance of a request for additional information and documentary materials by the Antitrust Division or FTC. See Note 3: Acquisitions in these Notes for further information on the acquisition of AJRD. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 30, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation — Our Consolidated Financial Statements include the accounts of L3Harris Technologies, Inc. and its consolidated subsidiaries. As used in these Notes to the Consolidated Financial Statements, the terms “L3Harris,” “Company,” “we,” “our” and “us” refer to L3Harris Technologies, Inc. and its consolidated subsidiaries. Intracompany transactions and accounts have been eliminated. Amounts contained in this Report may not always add to totals due to rounding. |
Fiscal Year | Fiscal Year |
Organizational Structure and Change in Accounting Policy | Organizational Structure and Change in Accounting Policy — We implemented a new organizational structure effective January 1, 2022, resulting in changes to our operating segments, which are also our reportable segments and are referred to as our business segments. The new structure streamlined our business segments from four to three business segments. Our former Aviation Systems segment was eliminated as a business segment. We updated our business segment reporting and accounting policies for pension and OPEB income or expense to better align our presentation of business segment information with our industry peers. Our business segment operating results include pension and OPEB cost under CAS, as CAS pension and OPEB cost is allocable to and allowable under contracts with the U.S. Government. We no longer assign or allocate FAS pension and OPEB income or expense to our business segments. GAAP requires pension and OPEB income or expense to be recognized on a FAS basis. Therefore, we present a “FAS/CAS operating adjustment” outside of business segment results, representing the difference between the service cost component of FAS pension and OPEB income or expense and total CAS pension and OPEB cost or expense. Non-service cost components of FAS pension and OPEB income or expense are included as a component of the Non-operating income, net line item in our Consolidated Statement of Operations. During the quarter ended April 3, 2020, we adjusted our segment reporting to better align our businesses and transferred two businesses between our IMS and SAS segments. |
Use of Estimates | Use of Estimates — The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the amounts reported in the accompanying Consolidated Financial Statements and these Notes and related disclosures. These estimates and assumptions are based on experience and other information available prior to issuance of the accompanying Consolidated Financial Statements and these Notes. Materially different results can occur as circumstances change and additional information becomes known. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents include cash at banks and temporary cash investments with a maturity of three or fewer months when purchased. These investments include accrued interest and are carried at the lower of cost or market. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Fair Value Measurements | Fair Value Measurements — Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants at the measurement date. Entities are required to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value, and to utilize a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included within Level 1, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are observable or are derived principally from, or corroborated by, observable market data by correlation or other means. • Level 3 — Unobservable inputs that are supported by little or no market activity, are significant to the fair value of the assets or liabilities and reflect our own assumptions about the assumptions market participants would use in pricing the asset or liability developed using the best information available in the circumstances. In certain instances, fair value is estimated using quoted market prices obtained from external pricing services. In obtaining such data from the pricing service, we have evaluated the methodologies used to develop the estimate of fair value in order to assess whether such valuations are representative of fair value, including NAV. Additionally, in certain circumstances, the NAV reported by an asset manager may be adjusted when sufficient evidence indicates NAV is not representative of fair value. |
Accounts Receivable | Accounts Receivable — We record receivables at net realizable value and they generally do not bear interest. This value includes an allowance for estimated uncollectible accounts to reflect any losses anticipated on the accounts receivable balances which is charged to the provision for doubtful accounts. We calculate this allowance at inception based on expected loss over the life of the receivable. We consider historical write-offs by customer, level of past due accounts and economic status of the customers. A receivable is considered delinquent if it is unpaid after the term of the related invoice has expired. Write-offs are recorded at the time a customer receivable is deemed uncollectible. |
Contract Assets and Liabilities, Costs to Obtain or Fulfill a Contract and Revenue Recognition | Contract Assets and Liabilities — The timing of revenue recognition, customer billings and cash collections results in accounts receivable, contract assets and contract liabilities at the end of each reporting period. Contract assets include unbilled amounts typically resulting from revenue recognized exceeding amounts billed to customers for contracts utilizing the POC cost-to-cost revenue recognition method. We bill customers as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, upon achievement of contractual milestones or upon deliveries and, in certain arrangements, the customer may withhold payment of a portion of the contract price until contract completion. Contract liabilities include advance payments and billings in excess of Costs to Obtain or Fulfill a Contract Revenue Recognition — We account for a contract when it has approval and commitment from all parties, the rights and payment terms of the parties can be identified, the contract has commercial substance and the collectability of the consideration, or transaction price, is probable. Our contracts are often subsequently modified to include changes in specifications, requirements or price that may create new or change existing enforceable rights and obligations. We do not account for contract modifications (including unexercised options) or follow-on contracts until they meet the requirements noted above to account for a contract. At the inception of each contract, we evaluate the promised goods and services to determine whether the contract should be accounted for as having one or more performance obligations. A performance obligation is a promise to transfer a distinct good or service to a customer and represents the unit of accounting for revenue recognition. A substantial majority of our revenue is derived from long-term development and production contracts involving the design, development, manufacture or modification of aerospace and defense products and related services according to the customers’ specifications. Due to the highly interdependent and interrelated nature of the underlying goods and services and the significant service of integration that we provide, which often result in the delivery of multiple units, we account for these contracts as one performance obligation. For contracts that include both development/production and follow-on support services (for example, operations and maintenance), we generally consider the follow-on services distinct in the context of the contract and account for them as separate performance obligations. Additionally, a significant amount of our revenue is derived from contracts to provide multiple distinct goods to a customer where the goods can readily be sold to other customers based on their commercial nature and, accordingly, these goods are accounted for as separate performance obligations. Shipping and handling costs incurred after control of a product has transferred to the customer (for example, in free on board shipping arrangements) are treated as fulfillment costs and, therefore, are not accounted for as separate performance obligations. Also, we record taxes collected from customers and remitted to governmental authorities on a net basis in that they are excluded from revenue. As noted above, our contracts are often subsequently modified to include changes in specifications, requirements or price. Depending on the nature of the modification, we consider whether to account for the modification as an adjustment to the existing contract or as a separate contract. Often, the deliverables in our contract modifications are not distinct from the existing contract due to the significant integration and interrelated tasks provided in the context of the contract. Therefore, such modifications are accounted for as if they are part of the existing contract, and we may be required to recognize a cumulative catch-up adjustment to revenue at the date of the contract modification. We determine the transaction price for each contract based on our best estimate of the consideration we expect to receive, which includes assumptions regarding variable consideration, such as award and incentive fees. These variable amounts are generally awarded upon achievement of certain negotiated performance metrics, program milestones or cost targets and can be based upon customer discretion. We include such estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. We estimate variable consideration primarily using the most likely amount method. For contracts with multiple performance obligations, we allocate the transaction price to each performance obligation based on the relative standalone selling price of the good or service underlying each performance obligation. The standalone selling price represents the amount for which we would sell the good or service to a customer on a standalone basis (i.e., not sold as a bundle with any other products or services). Our contracts with the U.S. Government, including foreign military sales contracts, are subject to the FAR and the prices of our contract deliverables are typically based on our estimated or actual costs plus a reasonable profit margin. As a result, the standalone selling prices of the goods and services in these contracts are typically equal to the selling prices stated in the contract, thereby eliminating the need to allocate (or reallocate) the transaction price to the multiple performance obligations. In our non-U.S. Government contracts, we also generally use the expected cost plus a reasonable profit margin approach to determine standalone selling price. In addition, we determine standalone selling price for certain contracts that are commercial in nature based on observable selling prices. We recognize revenue for each performance obligation when (or as) the performance obligation is satisfied by transferring control of the promised goods or services underlying the performance obligation to the customer. The transfer of control can occur over time or at a point in time. Point-in-Time Revenue Recognition: Our performance obligations are satisfied at a point in time unless they meet at least one of the following criteria, in which case they are satisfied over time: • The customer simultaneously receives and consumes the benefits provided by our performance as we perform; • Our performance creates or enhances an asset (for example, work in process) that the customer controls as the asset is created or enhanced; or • Our performance does not create an asset with an alternative use to us and we have an enforceable right to payment for performance completed to date. As noted above, a significant amount of our revenue is derived from contracts to provide multiple distinct goods to a customer that are commercial in nature and can readily be sold to other customers. These performance obligations do not meet any of the three criteria listed above to recognize revenue over time; therefore, we recognize revenue at a point in time, generally when the goods are received and accepted by the customer. Over-Time Revenue Recognition: For U.S. Government development and production contracts, there is a continuous transfer of control of the asset to the customer as it is being produced based on FAR clauses in the contract that provide the customer with lien rights to work in process and allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. This also typically applies to our contracts with prime contractors for U.S. Government development and production contracts, when the above-described FAR clauses are flowed down to us by the prime contractors. Our non-U.S. Government development and production contracts, including international direct commercial contracts and U.S. contracts with state and local agencies, utilities, commercial and transportation organizations, often do not include the FAR clauses described above. However, over-time revenue recognition is typically supported either through our performance creating or enhancing an asset that the customer controls as it is created or enhanced or based on other contractual provisions or relevant laws that provide us with an enforceable right to payment for our work performed to date plus a reasonable profit if our customer were permitted to and did terminate the contract for reasons other than our failure to perform as promised. Revenue for our development and production contracts is recognized over time, typically using the POC cost-to-cost method, whereby we measure our progress towards completion of the performance obligation based on the ratio of costs incurred to date to estimated costs at completion under the contract. Because costs incurred represent work performed, we believe this method best depicts transfer of control of the asset to the customer. For performance obligations to provide services that are satisfied over time, we recognize revenue either on a straight-line basis, the POC cost-to-cost method or based on the right-to-invoice method (i.e., based on our right to bill the customer), depending on which method best depicts transfer of control to the customer. Contract Estimates: Under the POC cost-to-cost method of revenue recognition, a single estimated profit margin is used to recognize profit for each performance obligation over its period of performance. Recognition of profit on a contract requires estimates of the total cost at completion and transaction price and the measurement of progress towards completion. Due to the long-term nature of many of our contracts, developing the estimated total cost at completion and total transaction price often requires judgment. Factors that must be considered in estimating the cost of the work to be completed include the nature and complexity of the work to be performed, subcontractor performance and the risk and impact of delayed performance. Factors that must be considered in estimating the total transaction price include contractual cost or performance incentives (such as incentive fees, award fees and penalties) and other forms of variable consideration, as well as our historical experience and our expectation for performance on the contract. At the outset of each contract, we gauge its complexity and perceived risks and establish an estimated total cost at completion in line with these expectations. After establishing the estimated total cost at completion, we follow a standard EAC process in which we review the progress and performance on our ongoing contracts at least quarterly and, in many cases, more frequently. If we successfully retire risks associated with the technical, schedule and cost aspects of a contract, we may lower our estimated total cost at completion commensurate with the retirement of these risks. Conversely, if we are not successful in retiring these risks, we may increase our estimated total cost at completion. Additionally, as the contract progresses, our estimates of total transaction price may increase or decrease if, for example, we receive award fees that are higher or lower than expected. When adjustments in estimated total costs at completion or in estimated total transaction price are determined, the related impact on operating income is recognized using the cumulative catch-up method, which recognizes in the current period the cumulative effect of such adjustments for all prior periods. Any anticipated losses on these contracts are fully recognized in the period in which the losses become evident. Bill-and-Hold Arrangements: For certain contracts, the finished product may temporarily be stored at our location under a bill-and-hold arrangement. Revenue is recognized on bill-and-hold arrangements at the point in time when the customer obtains control of the product and all of the following criteria have been met: the arrangement is substantive (for example, the customer has requested the arrangement); the product is identified separately as belonging to the customer; the product is ready for physical transfer to the customer; and we do not have the ability to use the product or direct it to another customer. In determining when the customer obtains control of the product, we consider certain indicators, including whether we have a present right to payment from the customer, whether title and/or significant risks and rewards of ownership have transferred to the customer and whether customer acceptance has been received (in the case of arrangements with customer acceptance provisions). Backlog: Backlog, which is the equivalent of our remaining performance obligations, represents the future revenue we expect to recognize as we perform on our current contracts. Backlog comprises both funded backlog (i.e., firm orders for which funding is authorized and appropriated) and unfunded backlog. Backlog excludes unexercised contract options and potential orders under ordering-type contracts, such as IDIQ contracts. |
Inventories | Inventories |
Property, Plant and Equipment | Property, Plant and Equipment |
Goodwill | Goodwill — We follow the acquisition method of accounting to record the assets and liabilities of acquired businesses at their estimated fair value at the date of acquisition. We initially record goodwill for the amount the consideration transferred exceeds the acquisition-date fair value of net identifiable assets acquired. We test goodwill for impairment at a level within the Company referred to as the reporting unit, which is our business segment level or one level below the business segment. We test our goodwill for impairment annually as of the first day of our fourth fiscal quarter, or under certain circumstances more frequently, such as when events or circumstances indicate there may be impairment. Such events or circumstances may include a significant deterioration in overall economic conditions, changes in the business climate of our industry, a decline in our market capitalization, operating performance indicators, competition, reorganizations of our business or the disposal of all or a portion of a reporting unit. To test goodwill for impairment, we may perform both qualitative and quantitative assessments. If we elect to perform a qualitative assessment for a certain reporting unit, we evaluate events and circumstances impacting the reporting unit to determine the probability that goodwill is impaired. If we perform a quantitative assessment for a certain reporting unit, we calculate the fair value of that reporting unit and compare the fair value to the reporting unit’s net book value. We estimate fair values of our reporting units based on projected cash flows, and sales and/or earnings multiples applied to the latest twelve months’ sales and earnings of our reporting units. Projected cash flows are based on our best estimate of future sales, operating costs and balance sheet metrics reflecting our view of the financial and market conditions of the underlying business; and the resulting cash flows are discounted using an appropriate discount rate that reflects the risk in the forecasted cash flows. The sales and earnings multiples applied to the sales and earnings of our reporting units are based on current multiples of sales and earnings for similar businesses, and based on sales and earnings multiples paid for recent acquisitions of similar businesses made in the marketplace. We then assess whether any implied control premium, based on a comparison of fair value |
Long-Lived Assets, Including Intangible Assets | Long-Lived Assets, Including Intangible Assets — Long-lived assets, including finite-lived intangible assets, are amortized to expense over their useful lives either according to the underlying economic benefit as reflected by future net cash inflows or on a straight-line basis depending on the nature of the asset. |
Leases | Leases — We recognize ROU assets and lease liabilities in our Consolidated Balance Sheet for operating and finance leases under which we are the lessee. As a practical expedient, leases with a term of twelve months or less (including reasonably certain extension periods) and leases with expected lease payments of less than $250 thousand are expensed as incurred. Operating lease assets and finance lease assets are included in the “Operating lease right-of-use assets” and “Property, plant and equipment, net” line items, respectively, in our Consolidated Balance Sheet. Operating lease liabilities and finance lease liabilities for obligations due within twelve months are included in the “Other accrued items” line item in our Consolidated Balance Sheet. Operating lease liabilities and finance lease liabilities for obligations due longer than twelve months are included in the “Operating lease liabilities” and “Other long-term liabilities” line items, respectively, in our Consolidated Balance Sheet. ROU assets and lease liabilities are recognized based on the present value of future lease payments. Lease payments primarily include base rent. We have some lease payments that are based on an index and changes to the index are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred. Our lease payments also include non-lease components such as real estate taxes and common-area maintenance costs. As a practical expedient, we account for lease and non-lease components as a single component. For certain leases, the non-lease components are variable and are therefore excluded from lease payments to determine the ROU asset. The present value of future lease payments is determined using our incremental borrowing rate at lease commencement over the expected lease term. We use our incremental borrowing rate because our leases do not provide an implicit lease rate. The expected lease term represents the number of years we expect to lease the property, including options to extend or terminate the lease when it is reasonably certain that we will exercise the option. |
Income Taxes | Income Taxes — We follow the asset and liability method of accounting for income taxes, required by ASC 740. We record deferred tax assets and liabilities for differences between the tax basis of assets and liabilities and amounts reported in our Consolidated Balance Sheet, as well as operating loss and tax credit carryforwards. We follow very specific and detailed guidelines in each tax jurisdiction regarding the recoverability of any tax assets recorded on the balance sheet and provide necessary valuation allowances as required. We regularly review our deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The implementation of a modified territorial tax system by the TCJA subjects us to tax on our Global Intangible Low-Taxed Income (“GILTI”) starting with fiscal 2019. The Financial Accounting Standards Board has permitted companies to make an accounting policy decision to either (1) treat taxes due on future GILTI inclusions in U.S. taxable income as a current-period expense when incurred (“period cost method”) or (2) factor such amounts into the measurement of its deferred taxes (“deferred method”). We have elected to use the period cost method. |
Standard Warranties | Standard Warranties — We record estimated standard warranty costs in the period that control of the related products transfers to the customer. Factors that affect the estimated cost for warranties include the terms of the contract, the type and complexity of the delivered product, the number of installed units, historical experience and management’s assumptions regarding anticipated rates of warranty claims and cost per claim. Our standard warranties start from the shipment, delivery or customer acceptance date and continue as follows: Segment Average Warranty Period Integrated Mission Systems One Space & Airborne Systems One Communication Systems One |
Foreign Currency Translation | Foreign Currency Translation |
Stock Options and Other Share-Based Compensation | Stock Options and Other Share-Based Compensation Stock Options The following information relates to stock options, including performance stock options, that have been granted under shareholder-approved L3Harris SIPs. Option exercise prices are equal to or greater than the fair market value of our common stock on the date the options are granted, using the closing stock price of our common stock. Options may be exercised for a period of ten years after the date of grant, and options, other than performance stock options, generally become exercisable in installments, which are typically 33.3% one year from the grant date, 33.3% two years from the grant date and 33.3% three years from the grant date. In certain instances, vesting and exercisability are also subject to performance criteria. The fair value as of the grant date of each option award was determined using the Black-Scholes-Merton option-pricing model which uses assumptions noted in the following table. Expected volatility over the expected term of the options is based on implied volatility from traded options on our common stock and the historical volatility of our stock price. The expected term of the options is based on historical observations of our common stock, considering average years to exercise for all options exercised and average years to cancellation for all options canceled, as well as average years remaining for vested outstanding options, which is calculated based on the weighted-average of these three inputs. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Restricted Stock and Restricted Stock Unit Awards The following information relates to awards of restricted stock and restricted stock units that have been granted to employees and non-employee directors under our L3Harris SIPs. These awards are not transferable until vested and the restrictions generally lapse upon the achievement of continued employment (or board membership) over a specified time period. Performance Share Unit Awards The following information relates to awards of performance share units that have been granted to employees under our L3Harris SIPs. Generally, these awards are subject to performance criteria, such as meeting predetermined operating income or earnings per share, return on invested capital targets and market conditions, such as total shareholder return, for a 3-year performance period. These awards also generally vest after a 3-year performance period. The final determination of the number of shares to be issued in respect of an award is made by our Board of Directors or a committee thereof. |
Retirement and Post-Employment Benefits | Pension and Postretirement Benefits — Defined benefit plans that we sponsor are accounted for as defined benefit pension and other postretirement defined benefit plans (collectively referred to as “defined benefit plans”). Accordingly, the funded or unfunded position of each defined benefit plan is recorded in our Consolidated Balance Sheet. Actuarial gains and losses and prior service costs or credits that have not yet been recognized through income are recorded in the “Accumulated other comprehensive loss” line item within equity in our Consolidated Balance Sheet, net of taxes, until they are amortized as a component of net periodic benefit income. The determination of benefit obligations and the recognition of expenses related to defined benefit plans are dependent on various assumptions. The major assumptions primarily relate to discount rates, long-term expected rates of return on plan assets, the rate of future compensation increases, mortality, termination and health care cost trend rates. We develop each assumption using relevant Company experience in conjunction with market-related data. Actuarial assumptions are reviewed annually with third-party consultants and adjusted as appropriate. For the recognition of net periodic benefit income, the calculation of the long-term expected return on plan assets is generally derived using a market-related value of plan assets based on yearly average asset values at the measurement date over the last five years, to be phased in over five years. Actual results that differ from our assumptions are accumulated and generally amortized for each plan to the extent required over the estimated future life expectancy or, if applicable, the future working lifetime of the plan’s active participants. The fair value of plan assets is determined based on market prices or estimated fair value at the measurement date. The measurement date for valuing defined benefit plan assets and obligations is the end of the month closest to our fiscal year end. We record the service cost component of net periodic benefit income in the “Cost of product sales and services” and “Engineering, selling and administrative expenses” line items in our Consolidated Statement of Operations. The non-service cost components of net periodic benefit income are included in the “Non-operating income” line item in our Consolidated Statement of Operations. |
Environmental Expenditures | Environmental Expenditures — We capitalize environmental expenditures that increase the life or efficiency of property or that reduce or prevent environmental contamination. We accrue environmental expenses resulting from existing conditions that relate to past or current operations. Our accruals for environmental expenses are recorded on a site-by-site basis when it is probable a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies available to us. Our accruals for environmental expenses represent the best estimates related to the investigation and remediation of environmental media such as water, soil, soil vapor, air and structures, as well as related legal fees, and are reviewed periodically, at least annually at the year-end balance sheet date, and updated for progress of investigation and remediation efforts and changes in facts and legal circumstances. If the timing and amount of future cash payments for environmental liabilities are fixed or reliably determinable, we generally discount such cash flows in estimating our accrual. As of December 30, 2022, we were named, and continue to be named, as a potentially responsible party at 82 sites where future liabilities could exist. These sites included 8 sites owned by us, 63 sites associated with our former and current locations or operations and 11 hazardous waste treatment, storage or disposal facility sites not owned by us that contain hazardous substances allegedly attributable to us from past operations. Based on an assessment of relevant factors, we estimated that our liability under applicable environmental statutes and regulations The relevant factors we considered in estimating our potential liabilities under applicable environmental statutes and regulations included some or all of the following as to each site: incomplete information regarding particular sites and other potentially responsible parties; uncertainty regarding the extent of investigation or remediation; our share, if any, of liability for such conditions; the selection of alternative remedial approaches; changes in environmental standards and regulatory requirements; probable insurance proceeds; cost-sharing agreements with other parties; and potential indemnification from successor and predecessor owners of these sites. We do not believe that any uncertainties regarding these relevant factors will materially affect our potential liability under applicable environmental statutes and regulations. We believe the total amount accrued is appropriate based on existing facts and circumstances, although we note the total amount accrued may increase or decrease in future years. |
Financial Guarantees and Commercial Commitments | Financial Guarantees and Commercial Commitments — Financial guarantees are contingent commitments issued to guarantee the performance of a customer to a third party in borrowing arrangements, such as commercial paper issuances, bond financings and similar transactions. |
Financial Instruments and Risk Management | Financial Instruments and Risk Management |
Income From Continuing Operations Per Share | Income From Continuing Operations Per Share — For all periods presented in our Consolidated Financial Statements and these Notes, income from continuing operations per share (“EPS”) is computed using the two-class method. The two-class method of computing EPS is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends paid and participation rights in undistributed earnings. Under the two-class method, income from continuing operations per common share is computed by dividing the sum of earnings distributed to common shareholders and undistributed earnings allocated to common shareholders by the weighted-average number of common shares outstanding for the period. Income from continuing operations per diluted common share is computed using the more dilutive of the two-class method or the treasury stock method. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the weighted-average shares outstanding during the period. |
Business Segments | Business Segments — We evaluate each business segment’s performance based on its operating income or loss, which we define as profit or loss from operations before income taxes, excluding FAS/CAS operating adjustment, interest income and expense, royalties and related intellectual property expenses, equity method investment income or loss and gains or losses from securities and other investments. Intersegment sales are generally transferred at cost to the buying segment, and the sourcing segment recognizes a profit that is eliminated. The “Corporate eliminations” line item in Note 24: Business Segments in these Notes represents the elimination of intersegment sales. Corporate expenses are primarily allocated to our business segments using an allocation methodology prescribed by U.S. Government regulations for government contractors. The “Unallocated corporate department expense, net” line item in Note 24: Business Segments in these Notes represents the portion of corporate expenses not allocated to our business segments or elimination of intersegment profits. The “FAS/CAS operating adjustment” line item in Note 24: Business Segments in these Notes represents the difference between the service cost component of FAS pension and OPEB income or expense and total CAS pension and OPEB income or expense. Non-service cost components of FAS pension and OPEB income or expense are included in the “Non-operating income, net” line item in our Consolidated Statement of Operations. The non-service cost components of net periodic pension and postretirement benefit income includes interest cost, expected return on plan assets, amortization of net actuarial gain or loss and effect of curtailments or settlements under our pension and postretirement benefit plans. • Integrated Mission Systems: including multi-mission ISR systems; integrated electrical and electronic systems for maritime platforms; advanced EO/IR solutions; fuzing and ordnance systems; commercial aviation products; and commercial pilot training operations; • Space & Airborne Systems: including space payloads, sensors and full-mission solutions; classified intelligence and cyber; avionics; electronic warfare; and mission networks for air traffic management operations; and • Communication Systems: including tactical communications with global communications solutions; broadband communications; integrated vision solutions; and public safety radios, system applications and equipment. Organizational Structure Effective January 1, 2022, we streamlined our business segments from four business segments to three business segments. As a result of the segment reorganization, the Aviation Systems segment was eliminated as a business segment. As part of our new business segment structure, the ongoing operations that had been part of our former Aviation Systems segment were integrated into the remaining segments. Fuzing and ordnance systems, commercial aviation products and commercial pilot training operations were moved into our IMS segment; and mission networks for air traffic management operations was moved into our SAS segment. During fiscal 2022, we adjusted our reporting within our IMS segment to better align our businesses and transferred our precision engagement business, which includes fuzing and ordnance systems, from ADG to Electro Optical. See Note 4: Business Divestitures and Asset Sales in these Notes and elsewhere in these Notes for information relating to businesses divested in fiscal 2022, 2021 and 2020. |
Accounting Changes or Recent Accounting Pronouncements | Accounting standards updates adopted and/or issued, but not effective until after December 30, 2022, are not expected to have a material effect on our Consolidated Financial Statements, and there have been no new accounting changes or recent accounting pronouncements which became effective during fiscal 2022 that materially impacted our Consolidated Financial Statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Average Warranty Period by Segment | Our standard warranties start from the shipment, delivery or customer acceptance date and continue as follows: Segment Average Warranty Period Integrated Mission Systems One Space & Airborne Systems One Communication Systems One |
Schedule of Net Estimated at Completion ("EAC") Adjustments | Net EAC adjustments had the following impact to earnings for the periods presented: Fiscal Year Ended (In millions, except per share amounts) December 30, 2022 December 31, 2021 January 1, 2021 Net EAC adjustments, before income taxes $ 36 $ 304 $ 400 Net EAC adjustments, net of income taxes 27 228 300 Net EAC adjustments, net of income taxes, per diluted share 0.14 1.12 1.39 |
BUSINESS DIVESTITURES AND ASS_2
BUSINESS DIVESTITURES AND ASSET SALES (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Business Divestitures and Asset Sales | The following table presents information regarding business divestitures completed during fiscal 2021 and fiscal 2020: (In millions) Business Segment (1) Date of Divestiture Sale Price Net Cash Proceeds (2) Fiscal 2021 Narda-MITEQ business (3) Other non-reportable businesses (12) December 6, 2021 $ 75 $ 76 ESSCO business (4) Other non-reportable businesses (12) November 26, 2021 55 53 Electron Devices business (5) Other non-reportable businesses (12) October 1, 2021 185 173 VSE disposal group (6) Other non-reportable businesses (12) July 30, 2021 20 19 CPS business (7) Other non-reportable businesses (12) July 2, 2021 398 347 Military training business (8) Other non-reportable businesses (12) July 2, 2021 1,050 1,059 $ 1,783 $ 1,727 Fiscal 2020 EOTech business (9) Communication Systems July 31, 2020 $ 42 $ 40 Applied Kilovolts business (10) Space & Airborne Systems May 15, 2020 12 12 Airport security and automation business (11) Other non-reportable businesses (12) May 4, 2020 1,000 987 $ 1,054 $ 1,039 _______________ (1) Business segment in which the operating results of each divested business was reported through the date of divestiture. (2) Net cash proceeds after selling costs and purchase price adjustments. (3) The Narda-MITEQ business manufactured component, SATCOM and radio frequency safety products for both military and commercial markets. (4) The ESSCO business manufactured metal space frame ground radomes and composite structures. (5) The Electron Devices and Narda Microwave-West divisions (“Electron Devices business”) manufactured microwave devices for ground-based, airborne and SATCOM and radar. (6) The VSE disposal group provided voice over internet protocol systems for air traffic management communications. (7) The CPS business engineered, designed and manufactured engines, transmissions, suspensions and turret drive systems for tracked and wheeled combat vehicle systems. (8) The military training business provided flight simulation solutions and training services to the DoD and foreign military agencies. (9) The EOTech business manufactured holographic sighting systems, magnified field optics and accessories for military, law enforcement and commercial markets around the world. (10) The Applied Kilovolts and Analytical Instrumentation business (“Applied Kilovolts business”) manufactured high-voltage power supplies and ion detectors for customers in fields such as biotechnology, materials science, healthcare, forensics, environmental sciences and homeland security. (11) The Security & Detection Systems and MacDonald Humfrey Automation solutions business (“airport security and automation business”) provided solutions used by the aviation and transportation industries, regulatory and customs authorities, government and law enforcement agencies and commercial and other high-security facilities. (12) Formerly our Aviation Systems segment. In fiscal 2021 and fiscal 2020, we had the following significant income before income taxes attributable to businesses divested in our Consolidated Statement of Operations: Fiscal Year Ended (In millions) December 31, 2021 January 1, 2021 Electron Devices business $ 44 $ 33 CPS business 53 62 Military training business 35 84 Fiscal Year Ended (In millions) December 31, 2021 January 1, 2021 Narda-MITEQ business $ (9) $ — ESSCO business 31 — Electron Devices business 31 — VSE disposal group (1) (29) (18) CPS business (2) (19) — Military training business 217 — EOTech — 2 Airport security and automation business — (23) Other (3) (2) (12) Total Business divestiture-related gains (losses), net $ 220 $ (51) _______________ (1) During the quarter ended July 3, 2020, upon classifying the VSE disposal group as held for sale, we recorded a non-cash impairment charge of $14 million, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2020. We recognized an $18 million non-cash remeasurement loss related to the VSE disposal group during fiscal 2020. (2) During the quarter ended April 2, 2021, upon classifying the CPS business as held for sale, we recorded a non-cash impairment charge of $62 million, which is included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Operations for fiscal 2021. See Note 9: Goodwill in these Notes for additional information. |
RECEIVABLES, NET (Tables)
RECEIVABLES, NET (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Receivables | Receivables, net are summarized below: (In millions) December 30, 2022 December 31, 2021 Accounts receivable $ 1,291 $ 1,088 Less: allowances for collection losses (40) (43) Receivables, net $ 1,251 $ 1,045 |
CONTRACT ASSETS AND CONTRACT _2
CONTRACT ASSETS AND CONTRACT LIABILITIES (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Contract Liabilities | Contract assets and contract liabilities are summarized below: (In millions) December 30, 2022 December 31, 2021 Contract assets $ 2,987 $ 3,021 Contract liabilities, current (1,400) (1,297) Contract liabilities, non-current (1) (117) (107) Net contract assets $ 1,470 $ 1,617 _______________ (1) The non-current portion of contract liabilities is included as a component of the “Other long-term liabilities” line item in our Consolidated Balance Sheet. The components of contract assets are summarized below: (In millions) December 30, 2022 December 31, 2021 Unbilled contract receivables, gross $ 4,629 $ 4,921 Unliquidated progress payments and advances (1,642) (1,900) Contract assets $ 2,987 $ 3,021 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are summarized below: (In millions) December 30, 2022 December 31, 2021 Finished products $ 181 $ 141 Work in process 396 335 Materials and supplies 714 506 Inventories $ 1,291 $ 982 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net are summarized below: (In millions) December 30, 2022 December 31, 2021 Land $ 78 $ 79 Software capitalized for internal use 686 576 Buildings 1,251 1,236 Machinery and equipment 2,322 2,177 4,337 4,068 Less: accumulated depreciation and amortization (2,233) (1,967) Property, plant and equipment, net $ 2,104 $ 2,101 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amounts of Goodwill | The assignment of goodwill and changes in the carrying amount of goodwill, by business segment, for fiscal 2022 and 2021 were as follows: (In millions) Integrated Mission Systems Space & Airborne Systems Communication Systems Aviation Systems (2) Total Balance at January 1, 2021 $ 6,499 $ 5,232 $ 4,153 $ 2,992 $ 18,876 Goodwill decrease from divestitures (1) — — — (564) (564) Impairment of goodwill — — — (62) (62) Currency translation adjustments (14) (30) — (17) (61) Balance at December 31, 2021 - As Reported 6,485 5,202 4,153 2,349 18,189 Reallocation of goodwill in segment reorganization (2) 1,702 647 — (2,349) — Balance at December 31, 2021 - After Reallocation 8,187 5,849 4,153 — 18,189 Assets of business held for sale (1) — (30) — — (30) Impairment of goodwill (447) — (355) — (802) Currency translation adjustments (31) (41) (2) — (74) Balance at December 30, 2022 $ 7,709 $ 5,778 $ 3,796 $ — $ 17,283 _______________ (1) During fiscal 2022, we assigned $30 million of goodwill associated with the pending VIS business divestiture to “Assets of business held for sale ” in our Consolidated Balance Sheet. During fiscal 2021, we completed the divestiture of six businesses (Narda-MITEQ business, ESSCO business, CPS business, military training business, Electron Devices business and VSE disposal group) and derecognized $564 million of goodwill as part of determining the gain or loss on the sales of these businesses. See Note 4: Business Divestitures and Asset Sales in these Notes for additional information regarding completed divestitures and businesses held for sale. (2) As a result of our new organizational structure effective January 1, 2022, streamlining our operations from four business segments to three business segments, we reallocated goodwill previously held by our former Aviation Systems segment to our remaining business segments as of January 1, 2021, the earliest period presented in these Notes. See additional information below and “Organizational Structure and Change in Accounting Policy” in Note 1: Significant Accounting Policies in these Notes. |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Identifiable intangible assets, net are summarized below: December 30, 2022 December 31, 2021 (In millions) Gross Carrying Accumulated Net Carrying Amount (1) Gross Carrying Accumulated Net Carrying Amount (1) Customer relationships $ 6,124 $ 2,189 $ 3,935 $ 6,194 $ 1,708 $ 4,486 Developed technologies 566 366 200 600 322 278 Contract backlog 1 1 — 13 13 — Trade names — divisions 95 53 42 108 56 52 Other 2 2 — 3 3 — Total finite-lived identifiable intangible assets 6,788 2,611 4,177 6,918 2,102 4,816 In-process research and development 21 — 21 21 — 21 Trade names — corporate 1,803 — 1,803 1,803 — 1,803 Total identifiable intangible assets, net $ 8,612 $ 2,611 $ 6,001 $ 8,742 $ 2,102 $ 6,640 _______________ (1) During fiscal 2022, we assigned $10 million of intangible assets associated with the pending VIS business divestiture to “Assets of business held for sale” in our Consolidated Balance Sheet. During fiscal 2021, we completed the divestiture of six businesses and derecognized $577 million of intangible assets as part of the gain or loss on these divestitures. See Note 4: Business Divestitures and Asset Sales in these Notes for additional information regarding divestitures and businesses held for sale. |
Schedule of Future Estimated Amortization Expense of Intangible Assets | Future estimated amortization expense for identifiable intangible assets is as follows: (In millions) 2023 $ 594 2024 557 2025 511 2026 456 2027 414 Thereafter 1,645 Total $ 4,177 |
INTANGIBLE ASSETS, NET (Table_2
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Identifiable intangible assets, net are summarized below: December 30, 2022 December 31, 2021 (In millions) Gross Carrying Accumulated Net Carrying Amount (1) Gross Carrying Accumulated Net Carrying Amount (1) Customer relationships $ 6,124 $ 2,189 $ 3,935 $ 6,194 $ 1,708 $ 4,486 Developed technologies 566 366 200 600 322 278 Contract backlog 1 1 — 13 13 — Trade names — divisions 95 53 42 108 56 52 Other 2 2 — 3 3 — Total finite-lived identifiable intangible assets 6,788 2,611 4,177 6,918 2,102 4,816 In-process research and development 21 — 21 21 — 21 Trade names — corporate 1,803 — 1,803 1,803 — 1,803 Total identifiable intangible assets, net $ 8,612 $ 2,611 $ 6,001 $ 8,742 $ 2,102 $ 6,640 _______________ (1) During fiscal 2022, we assigned $10 million of intangible assets associated with the pending VIS business divestiture to “Assets of business held for sale” in our Consolidated Balance Sheet. During fiscal 2021, we completed the divestiture of six businesses and derecognized $577 million of intangible assets as part of the gain or loss on these divestitures. See Note 4: Business Divestitures and Asset Sales in these Notes for additional information regarding divestitures and businesses held for sale. |
Schedule of Future Estimated Amortization Expense of Intangible Assets | Future estimated amortization expense for identifiable intangible assets is as follows: (In millions) 2023 $ 594 2024 557 2025 511 2026 456 2027 414 Thereafter 1,645 Total $ 4,177 |
INTANGIBLE ASSETS, NET (Table_3
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Identifiable intangible assets, net are summarized below: December 30, 2022 December 31, 2021 (In millions) Gross Carrying Accumulated Net Carrying Amount (1) Gross Carrying Accumulated Net Carrying Amount (1) Customer relationships $ 6,124 $ 2,189 $ 3,935 $ 6,194 $ 1,708 $ 4,486 Developed technologies 566 366 200 600 322 278 Contract backlog 1 1 — 13 13 — Trade names — divisions 95 53 42 108 56 52 Other 2 2 — 3 3 — Total finite-lived identifiable intangible assets 6,788 2,611 4,177 6,918 2,102 4,816 In-process research and development 21 — 21 21 — 21 Trade names — corporate 1,803 — 1,803 1,803 — 1,803 Total identifiable intangible assets, net $ 8,612 $ 2,611 $ 6,001 $ 8,742 $ 2,102 $ 6,640 _______________ (1) During fiscal 2022, we assigned $10 million of intangible assets associated with the pending VIS business divestiture to “Assets of business held for sale” in our Consolidated Balance Sheet. During fiscal 2021, we completed the divestiture of six businesses and derecognized $577 million of intangible assets as part of the gain or loss on these divestitures. See Note 4: Business Divestitures and Asset Sales in these Notes for additional information regarding divestitures and businesses held for sale. |
Schedule of Future Estimated Amortization Expense of Intangible Assets | Future estimated amortization expense for identifiable intangible assets is as follows: (In millions) 2023 $ 594 2024 557 2025 511 2026 456 2027 414 Thereafter 1,645 Total $ 4,177 |
ACCRUED WARRANTIES (Tables)
ACCRUED WARRANTIES (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Accrued Warranties | Changes in our liability for standard product warranties in fiscal 2022 and 2021 were as follows: (In millions) December 30, 2022 December 31, 2021 Balance at the beginning of the period $ 117 $ 133 Decrease from divestitures — (5) Accruals for product warranties issued during the period 39 46 Settlements made during the period (57) (56) Other, including foreign currency translation adjustments (9) (1) Balance at the end of the period $ 90 $ 117 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt, Net | Long-term debt, net is summarized below: (In millions) December 30, 2022 December 31, 2021 Variable-rate debt: Floating rate notes, due March 10, 2023 (1) $ 250 $ 250 Fixed-rate debt: 3.85% notes, due June 15, 2023 (“3.85% 2023 Notes”) 800 800 3.95% notes, due May 28, 2024 (“3.95% 2024 Notes”) 350 350 3.832% notes, due April 27, 2025 600 600 7.00% debentures, due January 15, 2026 100 100 3.85% notes, due December 15, 2026 (“3.85% 2026 Notes”) 550 550 6.35% debentures, due February 1, 2028 26 26 4.40% notes, due June 15, 2028 1,850 1,850 2.90% notes, due December 15, 2029 400 400 1.80% 2031 Notes, due January 15, 2031 (“1.80% 2031 Notes”) 650 650 4.854% notes, due April 27, 2035 400 400 6.15% notes, due December 15, 2040 300 300 5.054% notes, due April 27, 2045 500 500 Total variable and fixed-rate debt 6,776 6,776 Financing lease obligations and other debt 222 218 Total debt 6,998 6,994 Plus: unamortized bond premium 70 93 Less: unamortized discounts and issuance costs (25) (28) Total debt, net 7,043 7,059 Less: current portion of long-term debt, net (818) (11) Total long-term debt, net $ 6,225 $ 7,048 _______________ (1) During the first quarter of 2023, the Floating Rate Notes due March 2023 will be repaid and refinanced as long-term debt through the Term Loan 2025; therefore, the Floating Rate Notes due March 2023 have been classified as long-term debt in our Consolidated Balance Sheet as of December 30, 2022. |
Schedule of Estimated Fair Values of Long-term Debt | The following table presents the carrying amounts and estimated fair values of our long-term debt: December 30, 2022 December 31, 2021 (In millions) Carrying Fair Carrying Fair Long-term debt (including current portion) (1) $ 7,043 $ 6,569 $ 7,059 $ 7,701 _______________ (1) The fair value was estimated using a market approach based on quoted market prices for our debt traded in the secondary market. If our long-term debt in our balance sheet were measured at fair value, it would be categorized in Level 2 of the fair value hierarchy. |
Schedule of Debt Exchange | Each series of the New L3Harris Notes issued has an interest rate and maturity date that is identical to the L3 Notes. (In millions) Aggregate Principal Aggregate Principal Aggregate Principal 4.95% 2021 Notes $ 650 $ 501 $ 149 3.85% 2023 Notes 800 741 59 3.95% 2024 Notes 350 326 24 3.85% 2026 Notes 550 535 15 4.40% 2028 Notes, due June 15, 2028 (“4.40% 2028 Notes”) 1,000 918 82 Total $ 3,350 $ 3,021 $ 329 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Fair Value of Deferred Compensation Plan Investments and Liabilities by Category and Fair Value Hierarchy Level | The following table provides the fair value of our deferred compensation plan investments and liabilities by category and by fair value hierarchy level: December 30, 2022 December 31, 2021 (In millions) Total Level 1 Total Level 1 Assets Deferred compensation plan assets: (1) Equity and fixed income securities $ 64 $ 64 $ 77 $ 77 Investments measured at NAV: Corporate-owned life insurance 33 35 Total fair value of deferred compensation plan assets $ 97 $ 112 Liabilities Deferred compensation plan liabilities: (2) Equity securities and mutual funds $ 8 $ 8 $ 6 $ 6 Investments measured at NAV: Common/collective trusts and guaranteed investment contracts 192 177 Total fair value of deferred compensation plan liabilities $ 200 $ 183 _______________ (1) Represents diversified assets held in a “rabbi trust” associated with our non-qualified deferred compensation plans, which we include in the “Other current assets” and “Other non-current assets” line items in our Consolidated Balance Sheet, and which are measured at fair value. (2) Primarily represents obligations to pay benefits under certain non-qualified deferred compensation plans, which we include in the “Compensation and benefits” and “Other long-term liabilities” line items in our Consolidated Balance Sheet. Under these plans, participants designate investment options (including stock and fixed-income funds), which serve as the basis for measurement of the notional value of their accounts. |
Schedule of Funded Status of Defined Benefit Plans and Balance Sheet Information | The following table provides a summary of the funded status of our defined benefit plans and the presentation of such balances within our Consolidated Balance Sheet: December 30, 2022 December 31, 2021 (In millions) Pension Other Total Pension Other Total Fair value of plan assets $ 7,411 $ 242 $ 7,653 $ 9,604 $ 320 $ 9,924 PBO (7,494) (228) (7,722) (10,007) (348) (10,355) Funded status $ (83) $ 14 $ (69) $ (403) $ (28) $ (431) Consolidated Balance Sheet line item amounts: Other non-current assets $ 144 $ 66 $ 210 $ 150 $ 51 $ 201 Compensation and benefits (11) (6) (17) (11) (7) (18) Defined benefit plans (216) (46) (262) (542) (72) (614) |
Schedule of Pre-tax Amounts Recognized in Other Comprehensive Income (Loss) | The following table provides a summary of pre-tax amounts recorded within Accumulated other comprehensive loss: December 30, 2022 December 31, 2021 (In millions) Pension Other Total Pension Other Total Net actuarial loss (gain) $ 243 $ (100) $ 143 $ 209 $ (73) $ 136 Net prior service (credit) cost (183) 5 (178) (218) 6 (212) $ 60 $ (95) $ (35) $ (9) $ (67) $ (76) |
Schedule of Roll-forward of Projected Benefit Obligation | The following table provides a roll-forward of the PBO for our defined benefit plans: December 30, 2022 December 31, 2021 (In millions) Pension Other Total Pension Other Total Change in benefit obligation Benefit obligation at beginning of fiscal year $ 10,007 $ 348 $ 10,355 $ 11,045 $ 387 $ 11,432 Service cost 44 2 46 66 2 68 Interest cost 220 7 227 188 5 193 Actuarial gain (2,097) (107) (2,204) (381) (22) (403) Benefits paid (1) (626) (22) (648) (555) (24) (579) Settlements (2) — — — (268) — (268) Expenses paid (26) — (26) (31) — (31) Foreign currency exchange rate changes (28) — (28) 2 — 2 Divestiture (8) — (8) (65) — (65) Other 8 — 8 6 — 6 Benefit obligation at end of fiscal year $ 7,494 $ 228 $ 7,722 $ 10,007 $ 348 $ 10,355 _______________ (1) Fiscal 2022 includes approximately $64 million associated with the purchase of group annuity policies. The transaction is reflected in Benefits paid as settlement accounting had not been met. (2) Fiscal 2021 includes approximately $250 million associated with the purchase of group annuity policies. |
Schedule of Roll-forward of Plan Assets | The following table provides a roll-forward of the assets and the ending funded status of our defined benefit plans: December 30, 2022 December 31, 2021 (In millions) Pension Other Total Pension Other Total Change in plan assets Plan assets at beginning of fiscal year $ 9,604 $ 320 $ 9,924 $ 9,301 $ 299 $ 9,600 Actual return on plan assets (1,516) (51) (1,567) 1,215 43 1,258 Employer contributions 16 (5) 11 17 2 19 Benefits paid (1) (626) (22) (648) (555) (24) (579) Settlements (2) — — — (268) — (268) Expenses paid (26) — (26) (31) — (31) Foreign currency exchange rate changes (32) — (32) 1 — 1 Divestiture (10) — (10) (78) — (78) Other 1 — 1 2 — 2 Plan assets at end of fiscal year $ 7,411 $ 242 $ 7,653 $ 9,604 $ 320 $ 9,924 Funded status at end of fiscal year $ (83) $ 14 $ (69) $ (403) $ (28) $ (431) _______________ (1) Fiscal 2022 includes approximately $64 million associated with the transfer of plan assets to an insurance company. The transaction is reflected in Benefits paid as settlement accounting had not been met. (2) Fiscal 2021 includes approximately $250 million associated with the transfer of plan assets to an insurance company. |
Schedule of Accumulated Benefit Obligations | The following tables provide information for benefit plans with accumulated benefit obligations in excess of plan assets and benefit plans with PBO in excess of plan assets: December 30, 2022 December 31, 2021 (In millions) Pension Other Pension Other Accumulated benefit obligation $ 6,698 N/A $ 9,216 N/A Fair value of plan assets 6,472 N/A 8,672 N/A December 30, 2022 December 31, 2021 (In millions) Pension Other Pension Other PBO $ 6,699 $ 52 $ 9,340 $ 109 Fair value of plan assets 6,472 — 8,786 30 |
Schedule of Components of Net Benefit Income | The following table provides the components of net periodic benefit (income) loss and other amounts recognized in other comprehensive income in fiscal 2022, 2021 and 2020 as they pertain to our defined benefit plans: Pension Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Net periodic benefit income Service cost $ 44 $ 66 $ 65 Interest cost 220 188 273 Expected return on plan assets (624) (621) (630) Amortization of net actuarial loss 9 30 10 Amortization of prior service credit (27) (28) (28) Cost for special termination benefits — — 1 Effect of curtailments or settlements — 1 — Net periodic benefit income $ (378) $ (364) $ (309) Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial loss (gain) $ 42 $ (972) $ 403 Prior service cost 8 2 1 Amortization of net actuarial loss (9) (30) (10) Amortization of prior service credit 27 28 28 Currency translation adjustment 1 1 2 Recognized prior service credit — 4 — Recognized net actuarial loss — (4) — Total change recognized in other comprehensive income 69 (971) 424 Total impact from net periodic benefit (income) loss and changes in other comprehensive income $ (309) $ (1,335) $ 115 Other Benefits Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Net periodic benefit income Service cost $ 2 $ 2 $ 2 Interest cost 7 5 10 Expected return on plan assets (20) (20) (21) Amortization of net actuarial gain (7) — (3) Amortization of prior service cost 1 1 — Net periodic benefit income $ (17) $ (12) $ (12) Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial (gain) loss $ (34) $ (46) $ 4 Prior service cost — — 8 Amortization of net actuarial gain 7 — 3 Amortization of prior service cost (1) (1) — Total change recognized in other comprehensive income (28) (47) 15 Total impact from net periodic benefit (income) loss and changes in other comprehensive income $ (45) $ (59) $ 3 |
Schedule of Weighted-average Assumptions Used | The following tables provide the weighted-average assumptions used to determine PBO and net periodic benefit income, as they pertain to our defined benefit pension plans: Obligation assumptions as of: December 30, 2022 December 31, 2021 Discount rate 5.18 % 2.75 % Rate of future compensation increase 3.01 % 3.01 % Cash balance interest crediting rate 4.00 % 3.50 % Cost assumptions for fiscal periods ended: December 30, 2022 December 31, 2021 January 1, 2021 Discount rate to determine service cost 2.69 % 2.26 % 2.87 % Discount rate to determine interest cost 2.27 % 1.80 % 2.74 % Expected return on plan assets 7.44 % 7.43 % 7.68 % Rate of future compensation increase 3.01 % 3.01 % 2.80 % Cash balance interest crediting rate 3.50 % 3.50 % 3.50 % The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic benefit income, as they pertain to our other postretirement defined benefit plans: Obligation assumptions as of: December 30, 2022 December 31, 2021 Discount rate 5.16 % 2.60 % Rate of future compensation increase N/A N/A Cost assumptions for fiscal periods ended: December 30, 2022 December 31, 2021 January 1, 2021 Discount rate to determine service cost 2.91 % 2.49 % 3.25 % Discount rate to determine interest cost 2.06 % 1.42 % 2.55 % Rate of future compensation increase N/A N/A N/A |
Schedule of Strategic Target Assets Allocation and Fair Value of Plan Assets | The following table provides the current strategic target asset allocation ranges by asset category: Target Asset Equity investments 35 % — 55% Fixed income investments 25 % — 35% Alternative investments 12 % — 30% Cash and cash equivalents 0 % — 10% The following tables provide the fair value of plan assets held by our defined benefit plans by asset category and by fair value hierarchy level: December 30, 2022 (In millions) Total Level 1 Level 2 Level 3 Asset Category Equities: Domestic equities $ 1,275 $ 1,275 $ — $ — International equities 1,044 1,002 42 — Real Estate Investment Trusts 192 192 — — Fixed income: Corporate bonds 1,118 — 995 123 Government securities 320 — 320 — Securitized assets 166 — 166 — Fixed income funds 92 4 88 — Cash and cash equivalents 148 22 126 — Total 4,355 $ 2,495 $ 1,737 $ 123 Investments Measured at NAV: Equity funds 1,661 Fixed income funds 299 Hedge funds 294 Private equity funds 696 Real estate funds 372 Other 2 Total Investments Measured at NAV 3,324 Payables, net (26) Total fair value of plan assets $ 7,653 December 31, 2021 (In millions) Total Level 1 Level 2 Level 3 Asset Category Equities: Domestic equities $ 1,684 $ 1,684 $ — $ — International equities 1,367 1,278 89 — Real Estate Investment Trusts 259 259 — — Fixed income: Corporate bonds 1,411 — 1,335 76 Government securities 448 — 448 — Securitized assets 99 — 99 — Fixed income funds 102 5 97 — Cash and cash equivalents 337 9 328 — Total 5,707 $ 3,235 $ 2,396 $ 76 Investments Measured at NAV: Equity funds 2,667 Fixed income funds 444 Hedge funds 386 Private equity funds 559 Real estate funds 180 Other 3 Total Investments Measured at NAV 4,239 Payables, net (22) Total fair value of plan assets $ 9,924 |
Schedule of Expected Benefit Payments | The following table provides the projected timing of payments for benefits earned to date and benefits expected to be earned for future service by current active employees under our defined benefit plans: (In millions) Pension Other Benefits (1) Total Fiscal Years: 2023 $ 564 $ 21 $ 585 2024 568 21 589 2025 569 20 589 2026 569 19 588 2027 565 19 584 2028 — 2032 2,730 82 2,812 _______________ (1) Projected payments for Other Benefits reflect net payments from the Company, which include subsidies that reduce the gross payments by less than 1%. |
STOCK OPTIONS AND OTHER SHARE_2
STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Classification of Share-based Compensation Expense | The following table summarizes the amounts and classification of share-based compensation expense: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Total expense $ 109 $ 129 $ 94 Included in: Cost of product sales and services $ 19 $ 14 $ 11 Engineering, selling and administrative expenses 90 115 83 Income from continuing operations 109 129 94 Tax effect on share-based compensation expense (27) (33) (24) Total share-based compensation expense after-tax $ 82 $ 96 $ 70 |
Schedule of Assumptions Used In Calculating Fair Value of Stock Option Grants | A summary of the assumptions used in determining the fair value of the stock option grants under our L3Harris SIPs is as follows: Fiscal Year Ended December 30, 2022 December 31, 2021 January 1, 2021 Expected dividends 2.00% 1.99% 1.55% Expected volatility 29.09% 31.71% 22.74% Risk-free interest rate range 1.63% - 4.27% 0.75% 0.89% Expected term (years) 5.02 5.05 5.04 |
Schedule of Stock Option Activity | A summary of stock option activity under our L3Harris SIPs as of December 30, 2022 and changes during fiscal 2022 is as follows: Shares Weighted Weighted Aggregate Stock options outstanding at December 31, 2021 3,529,088 $ 150.68 Granted 390,347 $ 231.89 Exercised (469,241) $ 120.58 Forfeited or expired (144,065) $ 196.26 Stock options outstanding at December 30, 2022 3,306,129 $ 162.56 5.97 $ 160 Stock options exercisable at December 30, 2022 2,620,411 $ 150.11 5.30 $ 153 |
Schedule of Nonvested Stock Options Activity | A summary of the status of our nonvested stock options at December 30, 2022 and changes during fiscal 2022 is as follows: Shares Weighted-Average Nonvested stock options at December 31, 2021 1,519,321 $ 38.79 Granted 390,347 $ 53.66 Vested/forfeited, net (1,223,950) $ 38.91 Nonvested stock options at December 30, 2022 685,718 $ 46.76 |
Schedule of Restricted Stock and Restricted Stock Units Activity | A summary of the status of these awards at December 30, 2022 and changes during fiscal 2022 is as follows: Shares or Units Weighted-Average Restricted stock and restricted stock units outstanding at December 31, 2021 803,226 $ 192.33 Granted 330,379 $ 225.58 Vested (369,368) $ 198.15 Forfeited (90,742) $ 201.41 Restricted stock and restricted stock units outstanding at December 30, 2022 673,495 $ 211.16 |
Schedule of Performance Shares Activity | A summary of the status of these awards at December 30, 2022 and changes during fiscal 2022 is as follows: Shares or Units Weighted-Average Grant Price Per Share or Unit (1) Performance share units outstanding at December 31, 2021 458,171 $ 210.18 Granted 163,660 $ 258.83 Adjustment (1) 148,950 $ 204.85 Vested (198,600) $ 204.85 Forfeited (47,838) $ 212.51 Performance share units outstanding at December 30, 2022 524,343 $ 224.94 ______________ (1) Adjustment for achievement of performance measures |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The weighted average number of shares outstanding used to compute basic and diluted EPS are as follows: Fiscal Year Ended (In millions, except per share amounts) December 30, 2022 December 31, 2021 January 1, 2021 Basic weighted average common shares outstanding 191.8 201.3 214.0 Impact of dilutive share-based awards 1.7 1.9 1.9 Diluted weighted average common shares outstanding 193.5 203.2 215.9 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental operating and finance lease balance sheet information at December 30, 2022 and December 31, 2021 is as follows: (In millions) December 30, 2022 December 31, 2021 Operating Leases Operating lease ROU assets $ 756 $ 769 Other accrued items 121 109 Operating lease liabilities 741 768 Total operating lease liabilities $ 862 $ 877 Finance Leases Property, plant and equipment $ 170 $ 163 Accumulated amortization (15) (9) Property, plant and equipment, net $ 155 $ 154 Current portion of long-term debt $ 5 $ 4 Long-term debt 165 157 Total finance lease liabilities $ 170 $ 161 |
Schedule of Lease Expense and Supplemental Lease Information | The components of lease costs are as follows: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Operating lease cost $ 151 $ 172 $ 176 Short-term and equipment lease cost 21 20 7 Variable lease cost 25 20 25 Other, net (1) 6 3 1 Total lease cost $ 203 $ 215 $ 209 ______________ (1) Consists of finance amortization and interest costs as well as sublease income. Fiscal Year Ended (In millions, except lease term and discount rate) December 30, 2022 December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities Net cash provided by operating activities - operating lease payments $ 148 $ 154 Net cash provided by operating activities - finance lease interest payments 5 5 Net cash used in financing activities - finance lease obligation payments 4 3 Assets obtained in exchange for new lease obligations ROU assets obtained with operating leases $ 123 $ 260 Property, plant and equipment obtained with finance leases 20 120 Weighted average remaining lease term (in years) Operating leases 9.3 9.8 Finance leases 21.3 23.8 Weighted average discount rate Operating leases 3.5 % 3.7 % Finance leases 3.4 % 3.1 % |
Schedule of Future Lease Payments Under Non-cancelable Operating Leases | Maturities under non-cancelable operating and finance leases at December 30, 2022 were as follows: (In millions) Operating Leases Finance Leases 2023 $ 145 $ 11 2024 143 11 2025 118 11 2026 89 11 2027 82 10 Thereafter 420 187 Total future lease payments required (1) 997 241 Less: imputed interest 135 71 Total $ 862 $ 170 _______________ (1) On December 30, 2022, we had additional future payments on leases of $12 million that had not yet commenced. These leases will commence in 2023, and have lease terms of 7 years to 15 years. |
Schedule of Future Lease Payments Under Non-cancelable Finance Leases | Maturities under non-cancelable operating and finance leases at December 30, 2022 were as follows: (In millions) Operating Leases Finance Leases 2023 $ 145 $ 11 2024 143 11 2025 118 11 2026 89 11 2027 82 10 Thereafter 420 187 Total future lease payments required (1) 997 241 Less: imputed interest 135 71 Total $ 862 $ 170 _______________ (1) On December 30, 2022, we had additional future payments on leases of $12 million that had not yet commenced. These leases will commence in 2023, and have lease terms of 7 years to 15 years. |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments in Condensed Consolidated Balance Sheets | The table below presents the fair values of our derivatives designated as foreign currency hedging instruments in our Consolidated Balance Sheet at December 30, 2022 and December 31, 2021: (In millions) December 30, 2022 December 31, 2021 Derivatives designated as hedging instruments: Foreign currency forward contracts Other current assets $ 3 $ 2 Other non-current assets 1 1 Other accrued items 10 5 Other long-term liabilities 1 — |
NON-OPERATING INCOME, NET (Tabl
NON-OPERATING INCOME, NET (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Nonoperating Income (Expense) [Abstract] | |
Schedule of Components of Non-operating Income | The components of Non-operating income, net were as follows: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Non-service FAS pension income (1) $ 441 $ 445 $ 389 Equity investment (losses) gains, net (18) 5 — Impairment of equity method investment — (35) — Other, net 2 24 12 $ 425 $ 439 $ 401 _______________ (1) Non-service cost components of net periodic benefit income recorded in the “Non-operating income, net” line item in our Consolidated Statement of Operations include interest cost, expected return on plan assets, amortization of net actuarial gain and effect of curtailments or settlements under our pension and postretirement benefit plans. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Equity [Abstract] | |
Schedule of Components of AOCI | The components of AOCI are summarized below: (In millions) Foreign currency translation Net unrealized losses on hedging derivatives Unrecognized postretirement obligations Total AOCI Balance at December 31, 2021 $ (118) $ (89) $ 61 $ (146) Other comprehensive loss, before income taxes (124) (10) (33) (167) Income taxes 5 2 7 14 Other comprehensive loss before reclassifications to earnings, net of income taxes (119) (8) (26) (153) Losses (gains) reclassified to earnings (1) — 22 (9) 13 Income taxes — (4) 2 (2) Losses (gains) reclassified to earnings, net of income taxes — 18 (7) 11 Other comprehensive (loss) income, net of income taxes (119) 10 (33) (142) Balance at December 30, 2022 $ (237) $ (79) $ 28 $ (288) Balance at January 1, 2021 $ (58) $ (80) $ (701) $ (839) Other comprehensive (loss) income, before income taxes (63) (4) 1,013 946 Income taxes — 1 (255) (254) Other comprehensive (loss) income before reclassifications to earnings, net of income taxes (63) (3) 758 692 Losses (gains) reclassified to earnings (1) 3 (8) 6 1 Income taxes — 2 (2) — Losses (gains) reclassified to earnings, net of income taxes 3 (6) 4 1 Other comprehensive (loss) income, net of income taxes (60) (9) 762 693 Balance at December 31, 2021 $ (118) $ (89) $ 61 $ (146) _______________ (1) Losses (gains) reclassified to earnings are included in the “Revenue from product sales and services,” “Business divestiture-related gains (losses), net,” “Interest expense” and “Non-operating income, net ” line items in our Consolidated Statement of Operations. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision For Income Tax | The provisions for current and deferred income taxes are summarized as follows: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Current: United States $ 633 $ 415 $ 337 International 82 70 76 State and local 98 65 45 813 550 458 Deferred: United States (523) (55) (150) International (61) (34) (73) State and local (17) (21) (1) (601) (110) (224) $ 212 $ 440 $ 234 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. statutory income tax rate to our effective income tax rate is as follows: Fiscal Year Ended December 30, 2022 December 31, 2021 January 1, 2021 U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % State taxes 2.2 1.8 3.2 International income — 0.4 0.4 Non-deductible goodwill impairment 14.2 0.6 5.8 Research and development tax credit (13.0) (5.9) (9.2) FDII deduction (5.1) (1.4) (1.3) Change in valuation allowance 0.1 0.9 0.5 Impact of divestitures and reorganizations (1.3) 4.1 — Equity-based compensation (1) (0.2) (1.1) (1.0) Settlement of tax audits (0.7) (1.1) (1.8) Other items (0.5) — 0.1 Effective income tax rate 16.7 % 19.3 % 17.7 % _______________ |
Schedule of Deferred Tax Assets, Net of Valuation Allowance | The components of deferred income tax assets (liabilities) were as follows: (In millions) December 30, 2022 December 31, 2021 Deferred tax assets: Accruals $ 227 $ 288 Tax loss and credit carryforwards 194 174 Pension and other post-employment benefits 13 107 Operating lease obligation 239 245 Capitalized research and experimental expenditures 646 — Other 359 329 Valuation allowance (1) (243) (257) Deferred tax assets, net 1,435 886 Deferred tax liabilities: Property, plant and equipment (167) (103) Acquired intangibles (1,566) (1,663) Operating lease right-of-use asset (210) (218) Other (138) (161) Deferred tax liabilities (2,081) (2,145) Net deferred tax liabilities $ (646) $ (1,259) _______________ (1) The valuation allowance has been established to offset certain domestic and foreign deferred tax assets due to uncertainty regarding our ability to realize them in the future. The net change in our valuation allowance in fiscal 2022 and 2021 was a decrease of $14 million and an increase of $92 million, respectively. Net deferred tax assets (liabilities) were classified as follows in our Consolidated Balance Sheet: (In millions) December 30, 2022 December 31, 2021 Deferred income tax assets $ 73 $ 85 Deferred income tax liabilities (719) (1,344) Net deferred tax liabilities $ (646) $ (1,259) |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Balance at beginning of period $ 587 $ 542 $ 438 Additions based on tax positions taken during current period 124 115 60 Additions based on tax positions taken during prior periods 4 11 21 Additions for tax positions related to acquired entities — — 116 Decreases based on tax positions taken during prior periods (76) (64) (82) Decreases from lapse in statutes of limitations (6) (15) (3) Decreases from settlements (20) (2) (8) Balance at end of period $ 613 $ 587 $ 542 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Information by Business Segments | Segment revenue, segment operating income and a reconciliation of segment operating income to total income from continuing operations before income taxes are as follows: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Revenue Integrated Mission Systems $ 6,916 $ 7,042 $ 6,793 Space & Airborne Systems 6,060 5,965 5,823 Communication Systems 4,217 4,287 4,402 Other non-reportable businesses — 683 1,347 Corporate eliminations (131) (163) (171) Total Revenue $ 17,062 $ 17,814 $ 18,194 Income from Continuing Operations before Income Taxes Segment Operating Income: Integrated Mission Systems $ 424 $ 866 $ 205 Space & Airborne Systems 735 761 762 Communication Systems 667 1,043 1,035 Other non-reportable businesses — 104 160 1,826 2,774 2,162 Unallocated Items: Unallocated corporate department expense, net (1) 25 (51) (69) Amortization of acquisition-related intangibles (2) (605) (627) (709) L3Harris Merger-related integration expenses (90) (134) (140) Acquisition-related transaction and integration expenses (9) — — Pre-acquisition and other divestiture-related expenses (63) (71) 10 Additional cost of sales related to fair value step-up in inventory sold — — (31) Business divestiture-related gains (losses), net — 220 (51) Gain on sale of asset group 8 — — Impairment of goodwill and other assets (3) — (125) (132) Charges for severance and other termination costs (29) — — Charges related to an additional pre-merger legal contingency (31) — — FAS/CAS operating adjustment (4) 95 123 135 (699) (665) (987) Non-operating income, net 425 439 401 Net interest expense (279) (265) (254) Total income from continuing operations before income taxes $ 1,273 $ 2,283 $ 1,322 _______________ (1) Includes certain corporate-level expenses that are not included in management’s evaluation of segment operating performance. For fiscal 2022, also includes $29 million of income from our deferred compensation plans and $13 million of income from GHG emission reduction projects. (2) Includes amortization of identifiable intangible assets acquired in connection with business combinations. Because our acquisitions benefit the entire Company as opposed to any individual segment, the amortization of identifiable intangible assets acquired was not allocated to any segment. (3) For fiscal 2021, includes: (i) a $62 million non-cash goodwill impairment charge related to our CPS business and (ii) a $63 million non-cash intangible asset impairment charge related to our CTS reporting unit. For fiscal 2020, includes: (i) a $113 million non-cash intangible asset impairment charge related to our Commercial Aviation Solutions reporting unit and (ii) a $14 million non-cash goodwill impairment charge related to the then-potential divestiture of VSE disposal group, as well as a $5 million non-cash goodwill impairment charge related to the divestiture of the Applied Kilovolts business. See Note 9: Goodwill and Note 10: Intangible Assets in these Notes for additional information. (4) Represents the difference between the service cost component of FAS pension and OPEB income and total CAS pension and OPEB cost and replaces the “Pension adjustment” line item previously presented, which included the non-service components of FAS pension and OPEB income. See Net FAS/CAS operating adjustment table below. The table below is a reconciliation of the FAS/CAS operating adjustment: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 FAS pension service cost $ (46) $ (68) $ (67) Less: CAS pension cost (141) (191) (202) FAS/CAS operating adjustment 95 123 135 Non-service FAS pension income 441 445 388 FAS/CAS pension adjustment, net (1) $ 536 $ 568 $ 523 _______________ (1) FAS/CAS pension adjustment, net excludes net settlement and curtailment losses recognized in fiscal 2021. See Note 14: Pension and Other Postretirement Benefits in these Notes for additional information on net settlements and curtailments and see Note 1: Significant Accounting Policies in these Notes for additional information regarding our FAS/CAS pension adjustment accounting policy. Other selected financial information by business segment and geographical area is summarized below: Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Capital Expenditures Integrated Mission Systems $ 61 $ 93 $ 108 Space & Airborne Systems 117 131 122 Communication Systems 36 56 58 Other non-reportable businesses — 4 16 Corporate 38 58 64 $ 252 $ 342 $ 368 Depreciation and Amortization Integrated Mission Systems $ 83 $ 98 $ 105 Space & Airborne Systems 105 103 100 Communication Systems 47 49 61 Other non-reportable businesses — 8 34 Corporate 703 709 732 $ 938 $ 967 $ 1,032 Geographical Information for Continuing Operations Long-lived assets of U.S. operations $ 1,896 $ 1,870 $ 1,949 Long-lived assets of international operations 208 231 153 |
Schedule of Disaggregation of Revenue by Segment | Disaggregation of Revenue We disaggregate revenue for all three business segments by customer relationship, contract type and geographical region. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Fiscal Year Ended December 30, 2022 December 31, 2021 January 1, 2021 (In millions) IMS SAS CS IMS SAS CS IMS SAS CS Revenue By Customer Relationship Prime contractor $ 4,488 $ 3,818 $ 2,829 $ 4,738 $ 3,679 $ 2,886 $ 4,470 $ 3,425 $ 3,054 Subcontractor 2,367 2,217 1,343 2,243 2,274 1,347 2,273 2,380 1,304 Intersegment 61 25 45 61 12 54 50 18 44 $ 6,916 $ 6,060 $ 4,217 $ 7,042 $ 5,965 $ 4,287 $ 6,793 $ 5,823 $ 4,402 Revenue By Contract Type Fixed-price (1) $ 5,161 $ 3,710 $ 3,552 $ 5,316 $ 3,697 $ 3,631 $ 5,035 $ 3,612 $ 3,736 Cost-reimbursable 1,694 2,325 620 1,665 2,256 602 1,708 2,193 622 Intersegment 61 25 45 61 12 54 50 18 44 $ 6,916 $ 6,060 $ 4,217 $ 7,042 $ 5,965 $ 4,287 $ 6,793 $ 5,823 $ 4,402 Revenue By Geographical Region United States $ 5,096 $ 5,323 $ 2,735 $ 5,102 $ 5,250 $ 3,001 $ 5,347 $ 5,022 $ 3,138 International 1,759 712 1,437 $ 1,879 703 1,232 1,396 783 1,220 Intersegment 61 25 45 $ 61 12 54 50 18 44 $ 6,916 $ 6,060 $ 4,217 $ 7,042 $ 5,965 $ 4,287 $ 6,793 $ 5,823 $ 4,402 _______________ (1) Includes revenue derived from time-and-materials contracts. Fiscal Year Ended (In millions) December 30, 2022 December 31, 2021 January 1, 2021 Geographical Information for Continuing Operations Revenue from U.S. operations $ 15,373 $ 16,234 $ 16,998 Revenue from international operations 1,689 1,580 1,196 |
Schedule of Total Assets by Segment | Total assets by business segment are as follows: (In millions) December 30, 2022 December 31, 2021 Total Assets Integrated Mission Systems $ 11,283 $ 11,830 Space & Airborne Systems 8,475 8,151 Communication Systems 5,800 6,035 Other non-reportable businesses — 3 Corporate (1) 7,966 8,690 $ 33,524 $ 34,709 _______________ (1) Identifiable intangible assets acquired in connection with business combinations were recorded as corporate assets because they benefited the entire Company as opposed to any individual segment. Identifiable intangible asset balances recorded as corporate assets were $6.0 billion and $6.6 billion at December 30, 2022 and December 31, 2021, respectively. Corporate assets also consisted of cash, income taxes receivable, deferred income taxes, deferred compensation plan investments, buildings and equipment, as well as any assets of businesses held for sale. |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) employee in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||
Apr. 03, 2020 business | Dec. 30, 2022 USD ($) employee site segment country | Dec. 31, 2021 USD ($) segment | Jan. 01, 2021 USD ($) | Dec. 31, 2021 USD ($) segment | |
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Number of countries in which entity operates (more than) | country | 100 | ||||
Number of employees | employee | 46 | ||||
Number of reportable segments | segment | 3 | 4 | 4 | ||
Number of operating segments | segment | 3 | 4 | 4 | ||
Number of businesses transferred | business | 2 | ||||
Right-of-use asset obtained in exchange for lease liabilities | $ 20 | $ 120 | |||
Right-of-use asset obtained in exchange for operating lease liabilities | $ 123 | $ 260 | |||
Internal use software, useful life minimum | 3 years | ||||
Internal use software, useful life maximum | 10 years | ||||
Threshold for separate line item reporting of total current assets or total assets in consolidated balance sheets | 5% | 5% | 5% | ||
Threshold for separate line item reporting of total current liabilities or total liabilities in Consolidated Balance Sheet | 5% | 5% | 5% | ||
Revenue recognized from performance obligations satisfied in previous periods | $ 110 | $ 402 | $ 493 | ||
Number of sites with future environmental liabilities | site | 82 | ||||
Number of sites owned | site | 8 | ||||
Number of sites associated with former locations or operations | site | 63 | ||||
Number of treatment or disposal sites not owned | site | 11 | ||||
Accrual for environment loss contingencies | $ 113 | ||||
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | ||||
Surety Bond | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Guarantor obligations, current carrying value | $ 545 | ||||
Standby Letters of Credit | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Guarantor obligations, current carrying value | $ 707 | ||||
Engineers And Scientists | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Number of employees | employee | 20 | ||||
Maximum | Buildings | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Property, plant and equipment, useful life | 45 years | ||||
Maximum | Machinery and equipment | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Property, plant and equipment, useful life | 10 years | ||||
Minimum | Buildings | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Property, plant and equipment, useful life | 2 years | ||||
Minimum | Machinery and equipment | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Property, plant and equipment, useful life | 2 years | ||||
Other current assets | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Capitalized costs to obtain or fulfill a contract | $ 16 | 11 | $ 11 | ||
Other non-current assets | |||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
Capitalized costs to obtain or fulfill a contract | $ 25 | $ 26 | $ 26 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Average Warranty Period by Segment (Details) | 12 Months Ended |
Dec. 30, 2022 | |
Integrated Mission Systems | Minimum | |
Warranty Period [Line Items] | |
Average Warranty Period | 1 year |
Integrated Mission Systems | Maximum | |
Warranty Period [Line Items] | |
Average Warranty Period | 3 years |
Space & Airborne Systems | Minimum | |
Warranty Period [Line Items] | |
Average Warranty Period | 1 year |
Space & Airborne Systems | Maximum | |
Warranty Period [Line Items] | |
Average Warranty Period | 3 years |
Communication Systems | Minimum | |
Warranty Period [Line Items] | |
Average Warranty Period | 1 year |
Communication Systems | Maximum | |
Warranty Period [Line Items] | |
Average Warranty Period | 5 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Net Estimated at Completion ("EAC") Adjustments (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Change in Accounting Estimate [Line Items] | |||
Net EAC adjustments, before income taxes | $ 1,826 | $ 2,774 | $ 2,162 |
Contracts Accounted for under Percentage of Completion | |||
Change in Accounting Estimate [Line Items] | |||
Net EAC adjustments, before income taxes | 36 | 304 | 400 |
Net EAC adjustments, net of income taxes | $ 27 | $ 228 | $ 300 |
Net EAC adjustments, net of income taxes, per diluted share (in dollars per share) | $ 0.14 | $ 1.12 | $ 1.39 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | Dec. 17, 2022 | Oct. 03, 2022 |
Aerojet Rocketdyne | ||
Asset Acquisition [Line Items] | ||
Business acquisition, price of acquisition, expected | $ 4,700 | |
TDL | ||
Asset Acquisition [Line Items] | ||
Asset acquisition, price of acquisition, expected | $ 1,960 |
BUSINESS DIVESTITURES AND ASS_3
BUSINESS DIVESTITURES AND ASSET SALES - Sale Price and Net Cash Proceeds of Completed Divestitures (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale Price | $ 1,783 | $ 1,054 |
Net Cash Proceeds | 1,727 | 1,039 |
Narda-MITEQ business | Other Non-Reportable Businesses | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale Price | 75 | |
Net Cash Proceeds | 76 | |
ESSCO business | Other Non-Reportable Businesses | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale Price | 55 | |
Net Cash Proceeds | 53 | |
Electron Devices business | Other Non-Reportable Businesses | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale Price | 185 | |
Net Cash Proceeds | 173 | |
VSE disposal group | Other Non-Reportable Businesses | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale Price | 20 | |
Net Cash Proceeds | 19 | |
CPS business | Other Non-Reportable Businesses | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale Price | 398 | |
Net Cash Proceeds | 347 | |
Military training business | Other Non-Reportable Businesses | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale Price | 1,050 | |
Net Cash Proceeds | $ 1,059 | |
EOTech | Communication Systems | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale Price | 42 | |
Net Cash Proceeds | 40 | |
Applied Kilovolts and Analytical Instrumentation Business | Space & Airborne Systems | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale Price | 12 | |
Net Cash Proceeds | 12 | |
Airport security and automation business | Other Non-Reportable Businesses | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale Price | 1,000 | |
Net Cash Proceeds | $ 987 |
BUSINESS DIVESTITURES AND ASS_4
BUSINESS DIVESTITURES AND ASSET SALES - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 21, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain (loss) on disposition of other assets | $ 8,000,000 | $ 0 | $ 0 | |
Assets of business held for sale | 47,000,000 | 0 | ||
Assets of disposal group held for sale | 0 | 0 | ||
Liabilities of disposal group held for sale | 0 | 0 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sales of business, affiliate and productive assets | 23,000,000 | |||
Gain (loss) on disposition of other assets | 8,000,000 | |||
Cash price on sale of business | $ 1,783,000,000 | $ 1,054,000,000 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets of business held for sale | 47,000,000 | |||
Liabilities of business held for sale | 19,000,000 | |||
Disposal group, including discontinued operation, goodwill | 30,000,000 | |||
Intangibles reclassified to assets of disposal group | $ 10,000,000 | |||
Disposal Group, Held-for-sale, Not Discontinued Operations | VIS Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash price on sale of business | $ 70,000,000 |
BUSINESS DIVESTITURES AND ASS_5
BUSINESS DIVESTITURES AND ASSET SALES - Income Before Income Taxes of Held for Sale or Divested Businesses (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Electron Devices business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net income (loss) before income taxes of disposal group | $ 44 | $ 33 |
CPS business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net income (loss) before income taxes of disposal group | 53 | 62 |
Military training business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net income (loss) before income taxes of disposal group | $ 35 | $ 84 |
BUSINESS DIVESTITURES AND ASS_6
BUSINESS DIVESTITURES AND ASSET SALES - Business Divestiture-Related Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 01, 2022 | Apr. 02, 2021 | Jan. 03, 2020 | Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Goodwill impairment | $ 802 | $ 62 | ||||
Held-for-sale or Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Business divestiture-related gains (losses), net | 220 | $ (51) | ||||
Held-for-sale or Disposed of by Sale | Narda-MITEQ business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Business divestiture-related gains (losses), net | (9) | 0 | ||||
Held-for-sale or Disposed of by Sale | ESSCO business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Business divestiture-related gains (losses), net | 31 | 0 | ||||
Held-for-sale or Disposed of by Sale | Electron Devices business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Business divestiture-related gains (losses), net | 31 | 0 | ||||
Held-for-sale or Disposed of by Sale | VSE disposal group | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Business divestiture-related gains (losses), net | (29) | (18) | ||||
Held-for-sale or Disposed of by Sale | CPS business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Business divestiture-related gains (losses), net | (19) | 0 | ||||
Held-for-sale or Disposed of by Sale | Military training business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Business divestiture-related gains (losses), net | 217 | 0 | ||||
Held-for-sale or Disposed of by Sale | EOTech | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Business divestiture-related gains (losses), net | 0 | 2 | ||||
Held-for-sale or Disposed of by Sale | Airport security and automation business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Business divestiture-related gains (losses), net | 0 | (23) | ||||
Held-for-sale or Disposed of by Sale | Other | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Business divestiture-related gains (losses), net | (2) | (12) | ||||
Held-for-sale or Disposed of by Sale | Harris Night Vision | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Total Business divestiture-related gains (losses), net | $ 229 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | VSE disposal group | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Goodwill impairment | $ 14 | 14 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | CPS business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Goodwill impairment | $ 62 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | VSE disposal group | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Goodwill impairment | 14 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | CPS business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Goodwill impairment | $ 62 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Harris Night Vision | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Non-cash working capital adjustment to gain on sale of business | $ 12 |
RECEIVABLES, NET (Details)
RECEIVABLES, NET (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Accounts receivable | $ 1,291 | $ 1,088 |
Less: allowances for collection losses | (40) | (43) |
Receivables, net | $ 1,251 | $ 1,045 |
RECEIVABLES, NET - Narrative (D
RECEIVABLES, NET - Narrative (Details) $ in Millions | Dec. 30, 2022 USD ($) receivableSaleAgreement financialInstitution | Dec. 31, 2021 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of third party financial institutions | financialInstitution | 2 | |
Outstanding receivables sold under agreement | $ 99.9 | |
Cash proceeds received for receivables sold | $ 99.8 | |
RSA | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of receivables sales agreements | receivableSaleAgreement | 2 | |
RSA One | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Authorized amount of accounts receivables outstanding under agreement | $ 100 | |
RSA Two | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Authorized amount of accounts receivables outstanding under agreement | $ 100 |
CONTRACT ASSETS AND CONTRACT _3
CONTRACT ASSETS AND CONTRACT LIABILITIES (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 | Jan. 03, 2020 |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 2,987 | $ 3,021 | $ 3,021 |
Contract liabilities, current | (1,400) | (1,297) | |
Contract liabilities, non-current | (117) | (107) | |
Net contract assets | 1,470 | 1,617 | |
Components of Contract Assets: | |||
Unbilled contract receivables, gross | 4,629 | 4,921 | |
Unliquidated progress payments and advances | (1,642) | (1,900) | |
Contract assets | $ 2,987 | $ 3,021 | $ 3,021 |
CONTRACT ASSETS AND CONTRACT _4
CONTRACT ASSETS AND CONTRACT LIABILITIES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Recognized revenue related to contract liabilities outstanding at the end of the year | $ 1,057 | $ 930 | $ 974 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 181 | $ 141 |
Work in process | 396 | 335 |
Materials and supplies | 714 | 506 |
Inventories | $ 1,291 | $ 982 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment and finance lease right of use assets | $ 4,337 | $ 4,068 |
Less: accumulated depreciation and amortization | (2,233) | (1,967) |
Property, plant and equipment, net | 2,104 | 2,101 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment and finance lease right of use assets | 78 | 79 |
Software capitalized for internal use | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment and finance lease right of use assets | 686 | 576 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment and finance lease right of use assets | 1,251 | 1,236 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment and finance lease right of use assets | $ 2,322 | $ 2,177 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2021 | Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense related to property, plant and equipment | $ 342 | $ 343 | $ 318 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation, Nonproduction | 342 | 343 | 318 | |
Impairment of goodwill and other assets | $ 802 | 207 | 767 | |
CTS | ||||
Property, Plant and Equipment [Line Items] | ||||
Non-cash remeasurement loss recognized on remaining assets of disposal group | 82 | |||
Impairment charge for ROU asset | 19 | |||
Impairment charge for property, plant and equipment | 56 | |||
Impairment of intangible assets | $ (7) | |||
Commercial Aviation Solutions | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charge for property, plant and equipment | 257 | |||
Impairment of intangible assets | (113) | |||
Commercial Aviation Solutions | COVID | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charge for ROU asset | $ 31 | |||
Impairment charge for property, plant and equipment | 103 | 103 | ||
Impairment of goodwill and other assets | $ 257 | $ 257 |
GOODWILL - Changes in Carrying
GOODWILL - Changes in Carrying Amount of Goodwill (Details) $ in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 30, 2022 USD ($) segment | Dec. 31, 2021 USD ($) business segment | Jan. 01, 2021 USD ($) | Dec. 31, 2021 USD ($) segment | |
Goodwill [Roll Forward] | ||||
Beginning Balance | $ 18,189 | $ 18,876 | ||
Goodwill decrease from divestitures | (30) | (564) | $ (564) | |
Impairment of goodwill | (802) | (62) | ||
Currency translation adjustments | (74) | (61) | ||
Ending Balance | $ 17,283 | $ 18,189 | 18,876 | $ 18,189 |
Number of reportable segments | segment | 3 | 4 | 4 | |
Number of operating segments | segment | 3 | 4 | 4 | |
AS REPORTED | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | $ 18,189 | |||
Ending Balance | $ 18,189 | $ 18,189 | ||
Restatement Adjustment | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 0 | |||
Ending Balance | $ 0 | 0 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Goodwill [Roll Forward] | ||||
Disposal group, including discontinued operation, goodwill | 30 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Goodwill [Roll Forward] | ||||
Number of business divested | business | 6 | |||
Applied Kilovolts And Analytical Instrumentation, Airport Security And Automation And EOTech Businesses | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Goodwill [Roll Forward] | ||||
Number of business divested | business | 6 | |||
Integrated Mission Systems | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 8,187 | $ 6,499 | ||
Goodwill decrease from divestitures | 0 | 0 | ||
Impairment of goodwill | (447) | 0 | ||
Currency translation adjustments | (31) | (14) | ||
Ending Balance | 7,709 | 8,187 | 6,499 | 8,187 |
Integrated Mission Systems | AS REPORTED | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 6,485 | |||
Ending Balance | 6,485 | 6,485 | ||
Integrated Mission Systems | Restatement Adjustment | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 1,702 | |||
Ending Balance | 1,702 | 1,702 | ||
Space & Airborne Systems | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 5,849 | 5,232 | ||
Goodwill decrease from divestitures | (30) | 0 | ||
Impairment of goodwill | 0 | 0 | ||
Currency translation adjustments | (41) | (30) | ||
Ending Balance | 5,778 | 5,849 | 5,232 | 5,849 |
Space & Airborne Systems | AS REPORTED | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 5,202 | |||
Ending Balance | 5,202 | 5,202 | ||
Space & Airborne Systems | Restatement Adjustment | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 647 | |||
Ending Balance | 647 | 647 | ||
Communication Systems | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 4,153 | 4,153 | ||
Goodwill decrease from divestitures | 0 | 0 | ||
Impairment of goodwill | (355) | 0 | ||
Currency translation adjustments | (2) | 0 | ||
Ending Balance | 3,796 | 4,153 | 4,153 | 4,153 |
Communication Systems | AS REPORTED | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 4,153 | |||
Ending Balance | 4,153 | 4,153 | ||
Communication Systems | Restatement Adjustment | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 0 | |||
Ending Balance | 0 | 0 | ||
Aviation Systems | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 0 | 2,992 | ||
Goodwill decrease from divestitures | 0 | (564) | ||
Impairment of goodwill | 0 | (62) | ||
Currency translation adjustments | 0 | (17) | ||
Ending Balance | 0 | 0 | $ 2,992 | 0 |
Aviation Systems | AS REPORTED | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | 2,349 | |||
Ending Balance | 2,349 | 2,349 | ||
Aviation Systems | Restatement Adjustment | ||||
Goodwill [Roll Forward] | ||||
Beginning Balance | $ (2,349) | |||
Ending Balance | $ (2,349) | $ (2,349) |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||||||
Sep. 30, 2022 USD ($) | Apr. 01, 2022 USD ($) | Apr. 02, 2021 USD ($) | Jan. 01, 2021 USD ($) | Dec. 30, 2022 USD ($) segment reportingUnit | Dec. 31, 2021 USD ($) segment reportingUnit | Jan. 01, 2021 USD ($) | Dec. 31, 2021 segment | Jul. 03, 2020 USD ($) | Apr. 03, 2020 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Number of reportable segments | segment | 3 | 4 | 4 | |||||||
Number of operating segments | segment | 3 | 4 | 4 | |||||||
Number of reporting units | reportingUnit | 9 | 11 | ||||||||
Goodwill impairment | $ 802 | $ 62 | ||||||||
Impairment of goodwill and other assets | 802 | 207 | $ 767 | |||||||
Impairment of marketable software | 802 | 244 | 767 | |||||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of goodwill and other assets | |||||||||
Aviation Systems | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill impairment | 0 | $ 62 | ||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill assigned to disposal group | 30 | |||||||||
Electro Optical Reporting Unit | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill, transfers | $ 325 | |||||||||
Goodwill impairment | 134 | |||||||||
ADG Reporting Unit | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill impairment | 313 | |||||||||
Broadband And Electro Optical Reporting Unit | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill impairment | 489 | |||||||||
Broadcast Communications Reporting Unit | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill impairment | $ 355 | |||||||||
Commercial Aviation Solutions | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Impairment of intangible assets | 113 | |||||||||
Impairment charge for property, plant and equipment | 257 | |||||||||
Commercial Aviation Solutions | COVID | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill impairment | $ 111 | 461 | ||||||||
Goodwill impairment loss attributable to noncontrolling interests | 34 | |||||||||
Impairment of goodwill and other assets | 257 | 257 | ||||||||
Impairment charge for property, plant and equipment | 103 | 103 | ||||||||
Impairment charge for ROU asset | 31 | |||||||||
Impairment of marketable software | $ 10 | |||||||||
CPS business | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill impairment | $ 62 | |||||||||
CPS business | Disposal Group, Held-for-sale, Not Discontinued Operations | Aviation Systems | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill impairment | 62 | |||||||||
CPS business | Aviation Systems | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill assigned to disposal group | $ 174 | |||||||||
Applied Kilovolts and Analytical Instrumentation Business | Space & Airborne Systems | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill impairment | 5 | |||||||||
Goodwill assigned to disposal group | $ 6 | |||||||||
VSE disposal group | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill impairment | $ 14 | $ 14 | ||||||||
VSE disposal group | Aviation Systems | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill assigned to disposal group | $ 14 |
INTANGIBLE ASSETS, NET - Narrat
INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 605 | $ 627 | $ 729 |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of goodwill and other assets | ||
CTS | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of long-lived assets | 56 | ||
Impairment of intangible assets | (7) | ||
CTS | Aviation Systems | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of long-lived assets | 145 | ||
Impairment of intangible assets | $ (63) | ||
Commercial Aviation Solutions | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of long-lived assets | $ 257 | ||
Impairment of intangible assets | $ (113) |
INTANGIBLE ASSETS, NET - Summar
INTANGIBLE ASSETS, NET - Summary of Intangible Assets, Net (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 USD ($) business | Dec. 30, 2022 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,918 | $ 6,788 |
Accumulated Amortization | 2,102 | 2,611 |
Net Carrying Amount | 4,816 | 4,177 |
Total intangibles, gross carrying amount | 8,742 | 8,612 |
Total identifiable intangible assets, net | $ 6,640 | 6,001 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||
Finite-Lived Intangible Assets [Line Items] | ||
Number of business divested | business | 6 | |
Intangible assets derecognized as part of the gain (loss) on sale of businesses | $ 577 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles reclassified to assets of disposal group | 10 | |
In-process research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles | 21 | 21 |
Trade names — corporate | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles | 1,803 | 1,803 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,194 | 6,124 |
Accumulated Amortization | 1,708 | 2,189 |
Net Carrying Amount | 4,486 | 3,935 |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 600 | 566 |
Accumulated Amortization | 322 | 366 |
Net Carrying Amount | 278 | 200 |
Contract backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13 | 1 |
Accumulated Amortization | 13 | 1 |
Net Carrying Amount | 0 | 0 |
Trade names — corporate | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 108 | 95 |
Accumulated Amortization | 56 | 53 |
Net Carrying Amount | 52 | 42 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3 | 2 |
Accumulated Amortization | 3 | 2 |
Net Carrying Amount | $ 0 | $ 0 |
INTANGIBLE ASSETS, NET - Future
INTANGIBLE ASSETS, NET - Future Estimated Amortization Expense (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 594 | |
2024 | 557 | |
2025 | 511 | |
2026 | 456 | |
2027 | 414 | |
Thereafter | 1,645 | |
Net Carrying Amount | $ 4,177 | $ 4,816 |
INTANGIBLE ASSETS, NET - Narr_2
INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 605 | $ 627 | $ 729 |
CTS | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of long-lived assets | 56 | ||
Impairment of intangible assets | (7) | ||
CTS | Aviation Systems | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of long-lived assets | 145 | ||
Impairment of intangible assets | $ (63) | ||
Commercial Aviation Solutions | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of long-lived assets | 257 | ||
Impairment of intangible assets | $ (113) |
INTANGIBLE ASSETS, NET - Summ_2
INTANGIBLE ASSETS, NET - Summary of Intangible Assets, Net (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 USD ($) business | Dec. 30, 2022 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,918 | $ 6,788 |
Accumulated Amortization | 2,102 | 2,611 |
Net Carrying Amount | 4,816 | 4,177 |
Total intangibles, gross carrying amount | 8,742 | 8,612 |
Total identifiable intangible assets, net | $ 6,640 | 6,001 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||
Finite-Lived Intangible Assets [Line Items] | ||
Number of business divested | business | 6 | |
Intangible assets derecognized as part of the gain (loss) on sale of businesses | $ 577 | |
In-process research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles | 21 | 21 |
Trade names — corporate | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles | 1,803 | 1,803 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,194 | 6,124 |
Accumulated Amortization | 1,708 | 2,189 |
Net Carrying Amount | 4,486 | 3,935 |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 600 | 566 |
Accumulated Amortization | 322 | 366 |
Net Carrying Amount | 278 | 200 |
Contract backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13 | 1 |
Accumulated Amortization | 13 | 1 |
Net Carrying Amount | 0 | 0 |
Trade names — corporate | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 108 | 95 |
Accumulated Amortization | 56 | 53 |
Net Carrying Amount | 52 | 42 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3 | 2 |
Accumulated Amortization | 3 | 2 |
Net Carrying Amount | $ 0 | $ 0 |
INTANGIBLE ASSETS, NET - Futu_2
INTANGIBLE ASSETS, NET - Future Estimated Amortization Expense (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 594 | |
2024 | 557 | |
2025 | 511 | |
2026 | 456 | |
2027 | 414 | |
Thereafter | 1,645 | |
Net Carrying Amount | $ 4,177 | $ 4,816 |
INTANGIBLE ASSETS, NET - Narr_3
INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 605 | $ 627 | $ 729 |
CTS | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of long-lived assets | 56 | ||
Impairment of intangible assets | (7) | ||
CTS | Aviation Systems | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of long-lived assets | 145 | ||
Impairment of intangible assets | $ (63) | ||
Commercial Aviation Solutions | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of long-lived assets | 257 | ||
Impairment of intangible assets | $ (113) |
INTANGIBLE ASSETS, NET - Summ_3
INTANGIBLE ASSETS, NET - Summary of Intangible Assets, Net (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 USD ($) business | Dec. 30, 2022 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,918 | $ 6,788 |
Accumulated Amortization | 2,102 | 2,611 |
Net Carrying Amount | 4,816 | 4,177 |
Total intangibles, gross carrying amount | 8,742 | 8,612 |
Total identifiable intangible assets, net | $ 6,640 | 6,001 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||
Finite-Lived Intangible Assets [Line Items] | ||
Number of business divested | business | 6 | |
Intangible assets derecognized as part of the gain (loss) on sale of businesses | $ 577 | |
In-process research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles | 21 | 21 |
Trade names — corporate | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangibles | 1,803 | 1,803 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,194 | 6,124 |
Accumulated Amortization | 1,708 | 2,189 |
Net Carrying Amount | 4,486 | 3,935 |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 600 | 566 |
Accumulated Amortization | 322 | 366 |
Net Carrying Amount | 278 | 200 |
Contract backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13 | 1 |
Accumulated Amortization | 13 | 1 |
Net Carrying Amount | 0 | 0 |
Trade names — corporate | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 108 | 95 |
Accumulated Amortization | 56 | 53 |
Net Carrying Amount | 52 | 42 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3 | 2 |
Accumulated Amortization | 3 | 2 |
Net Carrying Amount | $ 0 | $ 0 |
INTANGIBLE ASSETS, NET - Futu_3
INTANGIBLE ASSETS, NET - Future Estimated Amortization Expense (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 594 | |
2024 | 557 | |
2025 | 511 | |
2026 | 456 | |
2027 | 414 | |
Thereafter | 1,645 | |
Net Carrying Amount | $ 4,177 | $ 4,816 |
ACCRUED WARRANTIES (Details)
ACCRUED WARRANTIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Changes in warranty liability | ||
Balance at the beginning of the period | $ 117 | $ 133 |
Decrease from divestitures | 0 | (5) |
Accruals for product warranties issued during the period | 39 | 46 |
Settlements made during the period | (57) | (56) |
Other, including foreign currency translation adjustments | (9) | (1) |
Balance at the end of the period | $ 90 | $ 117 |
CREDIT ARRANGEMENTS (Details)
CREDIT ARRANGEMENTS (Details) - Revolving Credit Facility - 2022 Credit Agreement - USD ($) | Dec. 30, 2022 | Jul. 29, 2022 | Jan. 01, 2021 |
Bridge Loan | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount | $ 200,000,000 | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing amount | $ 350,000,000 | ||
Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Provision for maximum amount of credit extensions | $ 3,000,000,000 | ||
Debt instrument, covenant, consolidated indebtedness to capital ratio | 65% | ||
Borrowings outstanding | $ 0 |
DEBT - Long-term Debt, Net (Det
DEBT - Long-term Debt, Net (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 | Nov. 25, 2020 | Apr. 27, 2015 | Dec. 03, 2010 | Jan. 31, 1996 |
Debt Instrument [Line Items] | ||||||
Financing lease obligations and other debt | $ 222 | $ 218 | ||||
Total debt | 6,998 | 6,994 | ||||
Plus: unamortized bond premium | 70 | 93 | ||||
Less: unamortized discounts and issuance costs | (25) | (28) | ||||
Total debt, net | 7,043 | 7,059 | ||||
Less: current portion of long-term debt, net | (818) | (11) | ||||
Total long-term debt, net | 6,225 | 7,048 | ||||
Variable-rate debt | Floating rates notes 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Debt | 250 | 250 | ||||
Fixed-rate debt | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | $ 6,776 | 6,776 | ||||
Fixed-rate debt | 3.850% Senior Notes due June 15, 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 3.85% | |||||
Debt | $ 800 | 800 | ||||
Fixed-rate debt | 3.95% notes, due May 28, 2024 (“3.95% 2024 Notes”) | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 3.95% | |||||
Debt | $ 350 | 350 | ||||
Fixed-rate debt | 3.832% notes, due April 27, 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 3.832% | 3.832% | ||||
Debt | $ 600 | 600 | ||||
Fixed-rate debt | 7.00% debentures, due January 15, 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 7% | 7% | ||||
Debt | $ 100 | 100 | ||||
Fixed-rate debt | 3.85% notes, due December 15, 2026 (“3.85% 2026 Notes”) | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 3.85% | |||||
Debt | $ 550 | 550 | ||||
Fixed-rate debt | 6.35% debentures, due February 1, 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 6.35% | |||||
Debt | $ 26 | 26 | ||||
Fixed-rate debt | 4.40% notes, due June 15, 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 4.40% | |||||
Debt | $ 1,850 | 1,850 | ||||
Fixed-rate debt | 2.90% notes, due December 15, 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 2.90% | |||||
Debt | $ 400 | 400 | ||||
Fixed-rate debt | 1.80% 2031 Notes, due January 15, 2031 (“1.80% 2031 Notes”) | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 1.80% | 1.80% | ||||
Debt | $ 650 | 650 | ||||
Fixed-rate debt | 4.854% notes, due April 27, 2035 | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 4.854% | 4.854% | ||||
Debt | $ 400 | 400 | ||||
Fixed-rate debt | 6.15% notes, due December 15, 2040 | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 6.15% | 6.15% | ||||
Debt | $ 300 | 300 | ||||
Fixed-rate debt | 5.054% notes, due April 27, 2045 | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 5.054% | 5.054% | ||||
Debt | $ 500 | $ 500 |
DEBT - Long-Term Debt Narrative
DEBT - Long-Term Debt Narrative (Details) | 12 Months Ended | |
Nov. 22, 2022 USD ($) loanDraw | Dec. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | ||
Fiscal 2022 | $ 814,000,000 | |
Fiscal 2023 | 365,000,000 | |
Fiscal 2024 | 865,000,000 | |
Fiscal 2025 | 664,000,000 | |
Fiscal 2026 | 13,000,000 | |
Thereafter | 4,277,000,000 | |
Repayment of debt | $ 0 | |
Debt instrument term | 3 years | |
Term loan, due November 21, 2025 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Debt instrument term | 3 years | |
Number of separate draws on loan commitment | loanDraw | 2 | |
Line of Credit | Term loan, due November 21, 2025 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Debt issued | $ 2,250,000,000 | |
Unused capacity, commitment fee percentage | 0.11% | |
Debt issuance costs | $ 2,000,000 | |
Debt instrument, covenant, other indebtedness threshold | $ 500,000,000 | |
Line of Credit | Term loan, due November 21, 2025 | Minimum | Secured Debt | ||
Debt Instrument [Line Items] | ||
Unused capacity, commitment fee percentage | 0.09% | |
Line of Credit | Term loan, due November 21, 2025 | Maximum | Secured Debt | ||
Debt Instrument [Line Items] | ||
Payments of general corporate expenses | $ 40,000,000 | |
Unused capacity, commitment fee percentage | 0.25% | |
Line of Credit | Secured Overnight Financing Rate (SOFR) | Term loan, due November 21, 2025 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate margin | 0.10% | |
Line of Credit | Senior Debt Ratings | Term loan, due November 21, 2025 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate margin | 1.25% | |
Line of Credit | Senior Debt Ratings | Term loan, due November 21, 2025 | Minimum | Secured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate margin | 1.125% | |
Line of Credit | Senior Debt Ratings | Term loan, due November 21, 2025 | Maximum | Secured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate margin | 1.875% | |
Line of Credit | Base Rate | Term loan, due November 21, 2025 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate margin | 0.25% | |
Line of Credit | Base Rate | Term loan, due November 21, 2025 | Minimum | Secured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate margin | 0.125% | |
Line of Credit | Base Rate | Term loan, due November 21, 2025 | Maximum | Secured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate margin | 0.875% |
DEBT - Long-Term Debt Repaid an
DEBT - Long-Term Debt Repaid and Issued - Fiscal 2020 - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Nov. 22, 2022 | Dec. 14, 2020 | Nov. 25, 2020 | Apr. 27, 2015 | Apr. 03, 2020 | Dec. 30, 2022 | Jan. 01, 2021 | |
Debt Instrument [Line Items] | |||||||
Repayment of debt | $ 0 | ||||||
Debt instrument term | 3 years | ||||||
Debt instrument, period of redemption prior to maturity | 3 months | 1 month | |||||
Fixed-rate debt | 4.950% Senior Notes due February 15, 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate | 4.95% | ||||||
Repayment of debt | $ 650,000,000 | ||||||
Gain (loss) on extinguishment of debt | $ (2,000,000) | ||||||
Fixed-rate debt | 2031 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate | 1.80% | 1.80% | |||||
Debt instrument redemption price percentage | 100% | ||||||
Redemption price upon change in control | 101% | ||||||
Debt issuance costs | $ 6,000,000 | ||||||
Fixed-rate debt | Exelis Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument redemption price percentage | 100% | ||||||
Debt issued | $ 2,400,000,000 | ||||||
Debt instrument, period of redemption prior to maturity | 1 month | ||||||
Fixed-rate debt | Treasury Rate | 4.950% Senior Notes due February 15, 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate | 4.95% | ||||||
Fixed-rate debt | Treasury Rate | 2031 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate | 1.80% | ||||||
Interest rate margin | 0.15% | ||||||
Variable-rate debt | 2023 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt issued | $ 250,000,000 | ||||||
Variable-rate debt | LIBOR | 2023 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin | 0.75% |
DEBT - Debt Exchange - Narrativ
DEBT - Debt Exchange - Narrative (Details) $ in Millions | May 05, 2020 | Jul. 02, 2019 USD ($) | Jul. 01, 2019 USD ($) | Dec. 30, 2022 | Jan. 01, 2021 | Dec. 14, 2020 |
Debt Instrument [Line Items] | ||||||
Debt instrument, period of redemption prior to maturity | 3 months | 1 month | ||||
L3Harris | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | $ 3,350 | |||||
Debt exchange to cash conversion ratio | 0.001 | |||||
4.950% Senior Notes due February 15, 2021 | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of debt exchanged | 9,990% | |||||
Debt exchange, converted interest rate | 4.95% | |||||
4.950% Senior Notes due February 15, 2021 | L3Harris | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 0.25% | |||||
Debt exchange, converted interest rate | 4.95% | 4.95% | ||||
3.850% Senior Notes due June 15, 2023 | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of debt exchanged | 9,990% | |||||
Debt exchange, converted interest rate | 3.85% | |||||
3.850% Senior Notes due June 15, 2023 | L3Harris | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 3.85% | |||||
Debt instrument redemption price percentage | 100% | |||||
Interest rate margin | 0.20% | |||||
Debt exchange, converted interest rate | 3.85% | 3.85% | ||||
3.950% Senior Notes due May 28 2024 | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of debt exchanged | 9,990% | |||||
Debt exchange, converted interest rate | 3.95% | |||||
3.950% Senior Notes due May 28 2024 | L3Harris | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 3.95% | |||||
Interest rate margin | 0.20% | |||||
Debt exchange, converted interest rate | 3.95% | 3.95% | ||||
3.850% Senior Notes due December 15, 2026 | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of debt exchanged | 9,990% | |||||
Debt exchange, converted interest rate | 3.85% | |||||
3.850% Senior Notes due December 15, 2026 | L3Harris | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 3.85% | |||||
Interest rate margin | 0.25% | |||||
Debt exchange, converted interest rate | 3.85% | 3.85% | ||||
4.400% Senior Notes due June 15, 2028 | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of debt exchanged | 9,890% | |||||
Debt exchange, converted interest rate | 4.40% | |||||
4.400% Senior Notes due June 15, 2028 | L3Harris | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt interest rate | 4.40% | |||||
Interest rate margin | 0.25% | |||||
Debt exchange, converted interest rate | 4.40% | 4.40% | ||||
L3 | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | $ 3,350 | |||||
Long-term debt | $ 329 | |||||
L3 | L3Harris | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 329 | |||||
L3 | 4.950% Senior Notes due February 15, 2021 | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | 650 | |||||
Long-term debt | 149 | |||||
Debt interest rate | 4.95% | |||||
L3 | 3.850% Senior Notes due June 15, 2023 | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | 800 | |||||
Long-term debt | 59 | |||||
L3 | 3.950% Senior Notes due May 28 2024 | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | 350 | |||||
Long-term debt | 24 | |||||
L3 | 3.850% Senior Notes due December 15, 2026 | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | 550 | |||||
Long-term debt | 15 | |||||
L3 | 4.400% Senior Notes due June 15, 2028 | Senior Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | $ 1,000 | |||||
Long-term debt | $ 82 |
DEBT - Schedule of Debt Exchang
DEBT - Schedule of Debt Exchanged (Details) - Senior Unsecured Debt - USD ($) $ in Millions | May 05, 2020 | Jul. 02, 2019 | Jul. 01, 2019 |
4.950% Senior Notes due February 15, 2021 | |||
Debt Instrument [Line Items] | |||
Debt exchange, converted interest rate | 4.95% | ||
3.850% Senior Notes due June 15, 2023 | |||
Debt Instrument [Line Items] | |||
Debt exchange, converted interest rate | 3.85% | ||
3.950% Senior Notes due May 28 2024 | |||
Debt Instrument [Line Items] | |||
Debt exchange, converted interest rate | 3.95% | ||
3.850% Senior Notes due December 15, 2026 | |||
Debt Instrument [Line Items] | |||
Debt exchange, converted interest rate | 3.85% | ||
4.400% Senior Notes due June 15, 2028 | |||
Debt Instrument [Line Items] | |||
Debt exchange, converted interest rate | 4.40% | ||
L3 | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | $ 3,350 | ||
Long-term debt | $ 329 | ||
L3 | 4.950% Senior Notes due February 15, 2021 | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | 650 | ||
Long-term debt | 149 | ||
L3 | 3.850% Senior Notes due June 15, 2023 | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | 800 | ||
Long-term debt | 59 | ||
L3 | 3.950% Senior Notes due May 28 2024 | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | 350 | ||
Long-term debt | 24 | ||
L3 | 3.850% Senior Notes due December 15, 2026 | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | 550 | ||
Long-term debt | 15 | ||
L3 | 4.400% Senior Notes due June 15, 2028 | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | $ 1,000 | ||
Long-term debt | 82 | ||
L3Harris | |||
Debt Instrument [Line Items] | |||
Aggregate Principal Amount of L3 Notes (prior to debt exchange) | 3,350 | ||
Aggregate Principal Amount of New L3Harris Notes Issued | $ 3,021 | ||
L3Harris | 4.950% Senior Notes due February 15, 2021 | |||
Debt Instrument [Line Items] | |||
Debt exchange, converted interest rate | 4.95% | 4.95% | |
Aggregate Principal Amount of New L3Harris Notes Issued | $ 501 | ||
L3Harris | 3.850% Senior Notes due June 15, 2023 | |||
Debt Instrument [Line Items] | |||
Debt exchange, converted interest rate | 3.85% | 3.85% | |
Aggregate Principal Amount of New L3Harris Notes Issued | $ 741 | ||
L3Harris | 3.950% Senior Notes due May 28 2024 | |||
Debt Instrument [Line Items] | |||
Debt exchange, converted interest rate | 3.95% | 3.95% | |
Aggregate Principal Amount of New L3Harris Notes Issued | $ 326 | ||
L3Harris | 3.850% Senior Notes due December 15, 2026 | |||
Debt Instrument [Line Items] | |||
Debt exchange, converted interest rate | 3.85% | 3.85% | |
Aggregate Principal Amount of New L3Harris Notes Issued | $ 535 | ||
L3Harris | 4.400% Senior Notes due June 15, 2028 | |||
Debt Instrument [Line Items] | |||
Debt exchange, converted interest rate | 4.40% | 4.40% | |
Aggregate Principal Amount of New L3Harris Notes Issued | $ 918 | ||
L3Harris | L3 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 329 |
DEBT - Long-Term Debt Issued Pr
DEBT - Long-Term Debt Issued Prior to Fiscal 2020 that Remained Outstanding at December 30, 2022 - Debt Activity in Fiscal 2019 - Narrative (Details) - Fixed-rate debt - 2.90% Notes | Nov. 27, 2019 USD ($) |
Debt Instrument [Line Items] | |
Debt issued | $ 400,000,000 |
Debt interest rate | 2.90% |
Debt instrument redemption price percentage | 100% |
Redemption price upon change in control | 101% |
Debt issuance costs | $ 3,000,000 |
Treasury Rate | |
Debt Instrument [Line Items] | |
Interest rate margin | 0.20% |
DEBT - Long-Term Debt Issued _2
DEBT - Long-Term Debt Issued Prior to Fiscal 2020 that Remained Outstanding at December 30, 2022 -Debt Activity in Fiscal 2018 - Narrative (Details) - Fixed-rate debt - USD ($) | Nov. 27, 2019 | Jun. 04, 2018 |
4.400% notes, due June 15, 2028 | ||
Debt Instrument [Line Items] | ||
Debt issued | $ 850,000,000 | |
Debt interest rate | 4.40% | |
Debt instrument redemption price percentage | 100% | |
Interest rate margin | 0.25% | |
Debt instrument redemption price percentage of principal amount | 101% | |
Debt issuance costs | $ 8,000,000 | |
2.90% Notes | ||
Debt Instrument [Line Items] | ||
Debt issued | $ 400,000,000 | |
Debt interest rate | 2.90% | |
Debt instrument redemption price percentage | 100% | |
Redemption price upon change in control | 101% | |
Debt issuance costs | $ 3,000,000 |
DEBT - Long-Term Debt Issued _3
DEBT - Long-Term Debt Issued Prior to Fiscal 2020 that Remained Outstanding at December 30, 2022 - Debt Issued Prior to Fiscal 2018 Still Outstanding - Narrative (Details) - Fixed-rate debt - USD ($) | Apr. 27, 2015 | Dec. 03, 2010 | Dec. 30, 2022 | Dec. 31, 2021 | Feb. 01, 2008 | Dec. 05, 2007 | Feb. 28, 1998 | Jan. 31, 1996 |
Exelis Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 2,400,000,000 | |||||||
Debt instrument redemption price percentage | 100% | |||||||
Debt instrument redemption price percentage of principal amount | 101% | |||||||
2025 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 600,000,000 | |||||||
Debt interest rate | 3.832% | 3.832% | ||||||
Debt principal amount | $ 600,000,000 | $ 600,000,000 | ||||||
2025 Notes | Treasury Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 0.30% | |||||||
2035 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 400,000,000 | |||||||
Debt interest rate | 4.854% | 4.854% | ||||||
Debt principal amount | $ 400,000,000 | 400,000,000 | ||||||
2035 Notes | Treasury Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 0.35% | |||||||
2045 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 500,000,000 | |||||||
Debt interest rate | 5.054% | 5.054% | ||||||
Debt principal amount | $ 500,000,000 | 500,000,000 | ||||||
2045 Notes | Treasury Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin | 0.40% | |||||||
2040 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 300,000,000 | |||||||
Debt interest rate | 6.15% | 6.15% | ||||||
Debt instrument redemption price percentage | 100% | |||||||
Interest rate margin | 0.35% | |||||||
Debt instrument redemption price percentage of principal amount | 101% | |||||||
Debt principal amount | $ 300,000,000 | 300,000,000 | ||||||
7.00% debentures, due January 15, 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 100,000,000 | |||||||
Debt interest rate | 7% | 7% | ||||||
Debt principal amount | $ 100,000,000 | 100,000,000 | ||||||
6.35% debentures, due February 1, 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt interest rate | 6.35% | |||||||
Notes payable | $ 150,000,000 | |||||||
Repurchased and retire principal amount of debentures | $ 25,000,000 | |||||||
Redemption of debentures | $ 99,000,000 | |||||||
Debt principal amount | $ 26,000,000 | $ 26,000,000 |
DEBT - Fair Value of Long-Term
DEBT - Fair Value of Long-Term Debt Schedule (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Debt Instrument [Line Items] | ||
Long-term debt (including current portion) | $ 7,043 | $ 7,059 |
Fair Value | Level 2 | Valuation, Market Approach | ||
Debt Instrument [Line Items] | ||
Long-term debt (including current portion) | $ 6,569 | $ 7,701 |
DEBT - Short-Term Debt and Inte
DEBT - Short-Term Debt and Interest Paid (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Debt Disclosure [Abstract] | |||
Short-term debt | $ 2 | $ 2 | |
Interest paid | $ 296 | $ 284 | $ 313 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Narrative (Details) | 12 Months Ended | |||||
Dec. 29, 2023 | Dec. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2021 USD ($) | Dec. 31, 2030 | Jan. 01, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Percentage match of the employee contribution | 6% | |||||
Matching contributions charged to expense | $ 226,000,000 | $ 230,000,000 | $ 225,000,000 | |||
Fair value of plan assets | 7,653,000,000 | 9,924,000,000 | 9,600,000,000 | |||
Projected benefit obligation | 7,722,000,000 | 10,355,000,000 | 11,432,000,000 | |||
Pre-tax curtailment gain as result of employee terminations | 3,000,000 | |||||
Defined benefit plan, benefit obligation, actuarial gain (loss) | $ 2,204,000,000 | 403,000,000 | ||||
Combined gains and losses as percentage of expected year end obligations (less than) | 0.01 | |||||
Accumulated benefit obligation for all defined benefit pension plans | $ 7,500,000,000 | |||||
Ultimate per capita cost of healthcare assumed (percent) | 6.90% | |||||
Private equity funds, liquidity restrictions term | 10 years | |||||
Required employer contributions in fiscal 2022 and beyond | $ 0 | |||||
Salaried Pension Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Fair value of plan assets | 6,400,000,000 | |||||
Projected benefit obligation | 6,500,000,000 | |||||
Defined benefit plan, benefit obligation, actuarial gain (loss) | 23,000,000 | |||||
Pension | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Fair value of plan assets | 7,411,000,000 | 9,604,000,000 | 9,301,000,000 | |||
Projected benefit obligation | 7,494,000,000 | 10,007,000,000 | $ 11,045,000,000 | |||
Reduction in pension plan assets transferred to annuity | 64,000,000 | 250,000,000 | ||||
Reduction in pension benefit obligations for plan assets transferred to annuity | 64,000,000 | 250,000,000 | ||||
Pre-tax loss on pension plan settlements | 4,000,000 | |||||
Defined benefit plan, benefit obligation, actuarial gain (loss) | $ 2,097,000,000 | $ 381,000,000 | ||||
Discount rate | 5.18% | 2.75% | ||||
Cash balance interest crediting rate | 4% | 3.50% | ||||
Expected return on plan assets rate | 7.44% | 7.43% | 7.68% | |||
Pension | Salaried Pension Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Percentage of total projected benefit obligation | 87% | |||||
Discount rate | 5.19% | |||||
Cash balance interest crediting rate | 4% | |||||
Expected return on plan assets rate | 7.50% | |||||
Pension | U.S. | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Cash balance benefit percentage | 1% | |||||
Frozen Equity Pension Plan | Salaried Pension Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Cash balance interest crediting rate | 3.75% | |||||
Forecast | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Ultimate per capita cost of healthcare assumed (percent) | 4.60% | |||||
Forecast | U.S. | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Expected return on plan assets rate | 7.50% | |||||
Forecast | Pension | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Expected return on plan assets rate | 7.44% | |||||
Forecast | Pension | Salaried Pension Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Expected return on plan assets rate | 7.50% | |||||
Private equity funds | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined benefit plans, future unfunded commitments on NAV equity funds investments | $ 568,000,000 | $ 504,000,000 | ||||
Real estate funds | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined benefit plans, future unfunded commitments on NAV equity funds investments | $ 33,000,000 | 100,000,000 | ||||
Minimum redemption notice period permitted on NAV equity funds investments | 90 days | |||||
Alternative investments | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined benefit plans, future unfunded commitments on NAV equity funds investments | $ 0 | $ 0 | ||||
Minimum redemption notice period permitted on NAV equity funds investments | 90 days |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFITS - Fair Value of Deferred Compensation Plans (Details) - Fair Value - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of deferred compensation plan assets | $ 97 | $ 112 |
Fair value of deferred compensation plan liabilities | 200 | 183 |
Equity securities and mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of deferred compensation plan liabilities | 8 | 6 |
Equity securities and mutual funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of deferred compensation plan liabilities | 8 | 6 |
Common/collective trusts and guaranteed investment contracts | Investments Measured at NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of deferred compensation plan liabilities | 192 | 177 |
Equity and fixed income securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of deferred compensation plan assets | 64 | 77 |
Equity and fixed income securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of deferred compensation plan assets | 64 | 77 |
Corporate-owned life insurance | Investments Measured at NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of deferred compensation plan assets | $ 33 | $ 35 |
PENSION AND OTHER POSTRETIREM_5
PENSION AND OTHER POSTRETIREMENT BENEFITS - Funded Status of Plan and Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 7,653 | $ 9,924 | $ 9,600 |
PBO | (7,722) | (10,355) | (11,432) |
Funded status | (69) | (431) | |
Other non-current assets | |||
Consolidated Balance Sheet line item amounts: | |||
Defined benefit plan assets | 210 | 201 | |
Compensation and benefits | |||
Consolidated Balance Sheet line item amounts: | |||
Defined benefit plan liabilities, current | (17) | (18) | |
Defined benefit plans | |||
Consolidated Balance Sheet line item amounts: | |||
Defined benefit plan liabilities, noncurrent | (262) | (614) | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,411 | 9,604 | 9,301 |
PBO | (7,494) | (10,007) | (11,045) |
Funded status | (83) | (403) | |
Pension | Other non-current assets | |||
Consolidated Balance Sheet line item amounts: | |||
Defined benefit plan assets | 144 | 150 | |
Pension | Compensation and benefits | |||
Consolidated Balance Sheet line item amounts: | |||
Defined benefit plan liabilities, current | (11) | (11) | |
Pension | Defined benefit plans | |||
Consolidated Balance Sheet line item amounts: | |||
Defined benefit plan liabilities, noncurrent | (216) | (542) | |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 242 | 320 | 299 |
PBO | (228) | (348) | $ (387) |
Funded status | 14 | (28) | |
Other Benefits | Other non-current assets | |||
Consolidated Balance Sheet line item amounts: | |||
Defined benefit plan assets | 66 | 51 | |
Other Benefits | Compensation and benefits | |||
Consolidated Balance Sheet line item amounts: | |||
Defined benefit plan liabilities, current | (6) | (7) | |
Other Benefits | Defined benefit plans | |||
Consolidated Balance Sheet line item amounts: | |||
Defined benefit plan liabilities, noncurrent | $ (46) | $ (72) |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT BENEFITS - Pre-tax Amounts Recorded in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | $ 143 | $ 136 |
Net prior service (credit) cost | (178) | (212) |
Defined benefit plan, accumulated comprehensive income (loss) | (35) | (76) |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | 243 | 209 |
Net prior service (credit) cost | (183) | (218) |
Defined benefit plan, accumulated comprehensive income (loss) | 60 | (9) |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | (100) | (73) |
Net prior service (credit) cost | 5 | 6 |
Defined benefit plan, accumulated comprehensive income (loss) | $ (95) | $ (67) |
PENSION AND OTHER POSTRETIREM_7
PENSION AND OTHER POSTRETIREMENT BENEFITS - Roll Forward of Projected Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Change in benefit obligation | |||
Benefit obligation at beginning of fiscal year | $ 10,355 | $ 11,432 | |
Service cost | 46 | 68 | |
Interest cost | 227 | 193 | |
Actuarial gain | (2,204) | (403) | |
Benefits paid | (648) | (579) | |
Settlements | 0 | (268) | |
Expenses paid | (26) | (31) | |
Foreign currency exchange rate changes | (28) | $ 2 | |
Divestiture | (8) | (65) | |
Other | 8 | 6 | |
Benefit obligation at end of fiscal year | 7,722 | 10,355 | 11,432 |
Pension | |||
Change in benefit obligation | |||
Benefit obligation at beginning of fiscal year | 10,007 | 11,045 | |
Service cost | 44 | 66 | 65 |
Interest cost | 220 | 188 | 273 |
Actuarial gain | (2,097) | (381) | |
Benefits paid | (626) | (555) | |
Settlements | 0 | (268) | |
Expenses paid | (26) | (31) | |
Foreign currency exchange rate changes | (28) | 2 | |
Divestiture | (8) | (65) | |
Other | 8 | 6 | |
Benefit obligation at end of fiscal year | 7,494 | 10,007 | 11,045 |
Other Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of fiscal year | 348 | 387 | |
Service cost | 2 | 2 | 2 |
Interest cost | 7 | 5 | 10 |
Actuarial gain | (107) | (22) | |
Benefits paid | (22) | (24) | |
Settlements | 0 | 0 | |
Expenses paid | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Divestiture | 0 | 0 | |
Other | 0 | 0 | |
Benefit obligation at end of fiscal year | $ 228 | $ 348 | $ 387 |
PENSION AND OTHER POSTRETIREM_8
PENSION AND OTHER POSTRETIREMENT BENEFITS - Roll Forward of Plan Assets and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Change in plan assets | |||
Plan assets at beginning of fiscal year | $ 9,924 | $ 9,600 | |
Actual return on plan assets | (1,567) | 1,258 | |
Employer contributions | 11 | 19 | |
Benefits paid | (648) | (579) | |
Settlements | 0 | (268) | |
Expenses paid | (26) | (31) | |
Foreign currency exchange rate changes | (32) | $ 1 | |
Divestiture | (10) | (78) | |
Other | 1 | 2 | |
Plan assets at end of fiscal year | 7,653 | 9,924 | 9,600 |
Funded status | (69) | (431) | |
Pension | |||
Change in plan assets | |||
Plan assets at beginning of fiscal year | 9,604 | 9,301 | |
Actual return on plan assets | (1,516) | 1,215 | |
Employer contributions | 16 | 17 | |
Benefits paid | (626) | (555) | |
Settlements | 0 | (268) | |
Expenses paid | (26) | (31) | |
Foreign currency exchange rate changes | (32) | 1 | |
Divestiture | (10) | (78) | |
Other | 1 | 2 | |
Plan assets at end of fiscal year | 7,411 | 9,604 | 9,301 |
Funded status | (83) | (403) | |
Other Benefits | |||
Change in plan assets | |||
Plan assets at beginning of fiscal year | 320 | 299 | |
Actual return on plan assets | (51) | 43 | |
Employer contributions | (5) | 2 | |
Benefits paid | (22) | (24) | |
Settlements | 0 | 0 | |
Expenses paid | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Divestiture | 0 | 0 | |
Other | 0 | 0 | |
Plan assets at end of fiscal year | 242 | 320 | $ 299 |
Funded status | $ 14 | $ (28) |
PENSION AND OTHER POSTRETIREM_9
PENSION AND OTHER POSTRETIREMENT BENEFITS - Accumulated Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 6,698 | $ 9,216 |
Fair value of plan assets | 6,472 | 8,672 |
PBO | 6,699 | 9,340 |
Fair value of plan assets | 6,472 | 8,786 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | 52 | 109 |
Fair value of plan assets | $ 0 | $ 30 |
PENSION AND OTHER POSTRETIRE_10
PENSION AND OTHER POSTRETIREMENT BENEFITS - Statement of Operations Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Net periodic benefit income | |||
Service cost | $ 46 | $ 68 | |
Interest cost | 227 | 193 | |
Pension | |||
Net periodic benefit income | |||
Service cost | 44 | 66 | $ 65 |
Interest cost | 220 | 188 | 273 |
Expected return on plan assets | (624) | (621) | (630) |
Amortization of net actuarial loss | 9 | 30 | 10 |
Amortization of prior service credit | (27) | (28) | (28) |
Cost for special termination benefits | 0 | 0 | 1 |
Effect of curtailments or settlements | 0 | 1 | 0 |
Net periodic benefit income | (378) | (364) | (309) |
Other changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Net actuarial (gain) loss | 42 | (972) | 403 |
Prior service cost | 8 | 2 | 1 |
Amortization of net actuarial loss | (9) | (30) | (10) |
Amortization of prior service credit | 27 | 28 | 28 |
Currency translation adjustment | 1 | 1 | 2 |
Recognized prior service credit | 0 | 4 | 0 |
Recognized net actuarial loss | 0 | (4) | 0 |
Total change recognized in other comprehensive income | 69 | (971) | 424 |
Total impact from net periodic benefit (income) loss and changes in other comprehensive income | (309) | (1,335) | 115 |
Other Benefits | |||
Net periodic benefit income | |||
Service cost | 2 | 2 | 2 |
Interest cost | 7 | 5 | 10 |
Expected return on plan assets | (20) | (20) | (21) |
Amortization of net actuarial loss | (7) | 0 | (3) |
Amortization of prior service credit | 1 | 1 | 0 |
Net periodic benefit income | (17) | (12) | (12) |
Other changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Net actuarial (gain) loss | (34) | (46) | 4 |
Prior service cost | 0 | 0 | 8 |
Amortization of net actuarial loss | 7 | 0 | 3 |
Amortization of prior service credit | (1) | (1) | 0 |
Total change recognized in other comprehensive income | (28) | (47) | 15 |
Total impact from net periodic benefit (income) loss and changes in other comprehensive income | $ (45) | $ (59) | $ 3 |
PENSION AND OTHER POSTRETIRE_11
PENSION AND OTHER POSTRETIREMENT BENEFITS - Assumptions Used to Determine Projected Benefits and Periodic Costs (Details) | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Pension | |||
Obligation assumptions as of: | |||
Discount rate | 5.18% | 2.75% | |
Rate of future compensation increase | 3.01% | 3.01% | |
Cash balance interest crediting rate | 4% | 3.50% | |
Cost assumptions for fiscal periods ended: | |||
Discount rate to determine service cost | 2.69% | 2.26% | 2.87% |
Discount rate to determine interest cost | 2.27% | 1.80% | 2.74% |
Expected return on plan assets | 7.44% | 7.43% | 7.68% |
Rate of future compensation increase | 3.01% | 3.01% | 2.80% |
Cash balance interest crediting rate | 3.50% | 3.50% | 3.50% |
Other Benefits | |||
Obligation assumptions as of: | |||
Discount rate | 5.16% | 2.60% | |
Cost assumptions for fiscal periods ended: | |||
Discount rate to determine service cost | 2.91% | 2.49% | 3.25% |
Discount rate to determine interest cost | 2.06% | 1.42% | 2.55% |
PENSION AND OTHER POSTRETIRE_12
PENSION AND OTHER POSTRETIREMENT BENEFITS - Strategic Target Asset Allocation (Details) | Dec. 30, 2022 |
Minimum | Equity investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Asset Allocation | 35% |
Minimum | Fixed income investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Asset Allocation | 25% |
Minimum | Alternative investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Asset Allocation | 12% |
Minimum | Cash and cash equivalents | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Asset Allocation | 0% |
Maximum | Equity investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Asset Allocation | 55% |
Maximum | Fixed income investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Asset Allocation | 35% |
Maximum | Alternative investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Asset Allocation | 30% |
Maximum | Cash and cash equivalents | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Asset Allocation | 10% |
PENSION AND OTHER POSTRETIRE_13
PENSION AND OTHER POSTRETIREMENT BENEFITS - Reconciliation of Defined Benefit Plan Asset Balances (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 7,653 | $ 9,924 | $ 9,600 |
Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,707 | ||
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,235 | ||
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,396 | ||
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 76 | ||
Investments Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,324 | 4,239 | |
Total | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,355 | ||
Total | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,495 | ||
Total | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,737 | ||
Total | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 123 | ||
Domestic equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,275 | 1,684 | |
Domestic equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,275 | 1,684 | |
Domestic equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Domestic equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,044 | 1,367 | |
International equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,002 | 1,278 | |
International equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 42 | 89 | |
International equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Real Estate Investment Trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 192 | 259 | |
Real Estate Investment Trusts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 192 | 259 | |
Real Estate Investment Trusts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Real Estate Investment Trusts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,118 | 1,411 | |
Corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 995 | 1,335 | |
Corporate bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 123 | 76 | |
Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 320 | 448 | |
Government securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Government securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 320 | 448 | |
Government securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Securitized assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 166 | 99 | |
Securitized assets | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Securitized assets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 166 | 99 | |
Securitized assets | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 92 | 102 | |
Fixed income funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 5 | |
Fixed income funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 88 | 97 | |
Fixed income funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 148 | 337 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22 | 9 | |
Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 126 | 328 | |
Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,661 | $ 2,667 | |
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible Enumeration] | Investments Measured at NAV | Investments Measured at NAV | |
Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 299 | $ 444 | |
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible Enumeration] | Investments Measured at NAV | Investments Measured at NAV | |
Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 294 | $ 386 | |
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible Enumeration] | Investments Measured at NAV | Investments Measured at NAV | |
Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 696 | $ 559 | |
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible Enumeration] | Investments Measured at NAV | Investments Measured at NAV | |
Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 372 | $ 180 | |
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible Enumeration] | Investments Measured at NAV | Investments Measured at NAV | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 2 | $ 3 | |
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible Enumeration] | Investments Measured at NAV | Investments Measured at NAV | |
Payables, net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ (26) | $ (22) |
PENSION AND OTHER POSTRETIRE_14
PENSION AND OTHER POSTRETIREMENT BENEFITS - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 30, 2022 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 585 |
2024 | 589 |
2025 | 589 |
2026 | 588 |
2027 | 584 |
2028 — 2032 | 2,812 |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 564 |
2024 | 568 |
2025 | 569 |
2026 | 569 |
2027 | 565 |
2028 — 2032 | 2,730 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 21 |
2024 | 21 |
2025 | 20 |
2026 | 19 |
2027 | 19 |
2028 — 2032 | $ 82 |
Expected future benefit percentage of gross payments, excluding subsidiaries | 1% |
STOCK OPTIONS AND OTHER SHARE_3
STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 USD ($) plan $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Jan. 01, 2021 USD ($) $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shareholder-approved employee stock incentive plans | plan | 2 | ||
Common stock issued, net of shares withheld for tax purposes (in shares) | shares | 800,000 | ||
Percent of options exercisable with in one year from grant date | 33.30% | ||
Percent of options exercisable with in two year from grant date | 33.30% | ||
Percent of options exercisable with in three year from grant date | 33.30% | ||
Weighted-average grant-date fair value of options (in dollars per share) | $ / shares | $ 53.66 | $ 42.16 | $ 34.49 |
Total intrinsic value of options exercised | $ 56 | $ 173 | $ 103 |
Unrecognized compensation expense on options | 20 | ||
Fair value of vested stock options | $ 42 | $ 6 | $ 0 |
2015 EIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock remaining available for future issuance (in shares) | shares | 14,300,000 | ||
Number of shares of counted against available for issuance per each awarded unit (in shares) | shares | 4.6 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award expiration period | 10 years | ||
Period for recognition on unrecognized compensation expense on awards | 1 year 11 months 1 day | ||
Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period for recognition on unrecognized compensation expense on awards | 2 years 8 months 1 day | ||
Restricted stock and restricted stock units outstanding (in shares) | shares | 673,495 | 803,226 | |
Unrecognized compensation costs of awards | $ 77 | ||
Weighed-average grant date price of awards granted (in dollars per share) | $ / shares | $ 225.58 | $ 202.10 | $ 195.66 |
Grant date fair value of awards vested | $ 69 | $ 19 | $ 9 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock and restricted stock units outstanding (in shares) | shares | 673,495 | ||
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award expiration period | 3 years | ||
Period for recognition on unrecognized compensation expense on awards | 2 years 5 months 23 days | ||
Restricted stock and restricted stock units outstanding (in shares) | shares | 524,343 | 458,171 | |
Unrecognized compensation costs of awards | $ 38 | ||
Weighed-average grant date price of awards granted (in dollars per share) | $ / shares | $ 258.83 | $ 201.32 | $ 228.29 |
Grant date fair value of awards vested | $ 41 | $ 0 | $ 0 |
STOCK OPTIONS AND OTHER SHARE_4
STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION - Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Total expense | $ 109 | $ 129 | $ 94 |
Tax effect on share-based compensation expense | (27) | (33) | (24) |
Total share-based compensation expense after-tax | 82 | 96 | 70 |
Cost of product sales and services | |||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Total expense | 19 | 14 | 11 |
Engineering, selling and administrative expenses | |||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Total expense | 90 | 115 | 83 |
Income from continuing operations | |||
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Total expense | $ 109 | $ 129 | $ 94 |
STOCK OPTIONS AND OTHER SHARE_5
STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION - Significant Fair Value Assumptions (Details) | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividends | 2% | 1.99% | 1.55% |
Expected volatility | 29.09% | 31.71% | 22.74% |
Risk-free interest rate range | 0.75% | 0.89% | |
Expected term (years) | 5 years 7 days | 5 years 18 days | 5 years 14 days |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate range | 1.63% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate range | 4.27% |
STOCK OPTIONS AND OTHER SHARE_6
STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION - Stock Options Activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 30, 2022 USD ($) $ / shares shares | |
Shares | |
Stock options outstanding, beginning balance (in shares) | shares | 3,529,088 |
Granted (in shares) | shares | 390,347 |
Exercised (in shares) | shares | (469,241) |
Forfeited or expired (in shares) | shares | (144,065) |
Stock options outstanding, ending balance (in shares) | shares | 3,306,129 |
Stock options exercisable December 30, 2022 (in shares) | shares | 2,620,411 |
Weighted Average Exercise Price Per Share | |
Stock options outstanding. beginning balance (in dollars per share) | $ / shares | $ 150.68 |
Granted (in dollars per share) | $ / shares | 231.89 |
Exercised (in dollars per share) | $ / shares | 120.58 |
Forfeited or expired (in dollars per share) | $ / shares | 196.26 |
Stock options outstanding, ending balance (in dollars per share) | $ / shares | 162.56 |
Stock options exercisable, weighted average exercise price per share (in dollars per share) | $ / shares | $ 150.11 |
Weighted Average Remaining Contractual Term (In years) | |
Stock options outstanding, weighted average remaining contractual term | 5 years 11 months 19 days |
Stock options exercisable, weighted average remaining contractual term | 5 years 3 months 18 days |
Aggregate Intrinsic Value (In millions) | |
Stock options outstanding, aggregate intrinsic value | $ | $ 160 |
Stock options exercisable, aggregate intrinsic value | $ | $ 153 |
STOCK OPTIONS AND OTHER SHARE_7
STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION - Nonvested Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Shares | |||
Nonvested stock options, beginning balance (in shares) | 1,519,321 | ||
Granted (in shares) | 390,347 | ||
Vested (in shares) | (1,223,950) | ||
Nonvested stock options, ending balance (in shares) | 685,718 | 1,519,321 | |
Weighted-Average Grant-Date Fair Value Per Share | |||
Nonvested stock options, beginning balance (in dollars per share) | $ 38.79 | ||
Granted (in dollars per share) | 53.66 | $ 42.16 | $ 34.49 |
Vested (in dollars per share) | 38.91 | ||
Nonvested stock options, ending balance (in dollars per share) | $ 46.76 | $ 38.79 |
STOCK OPTIONS AND OTHER SHARE_8
STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION - Restricted Stock and Restricted Stock Unit Awards Activity (Details) - Restricted Stock and Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Shares or Units | |||
Outstanding, beginning balance (in shares) | 803,226 | ||
Granted (in shares) | 330,379 | ||
Vested (in shares) | (369,368) | ||
Forfeited (in shares) | (90,742) | ||
Outstanding, ending balance (in shares) | 673,495 | 803,226 | |
Weighted-Average Grant Price Per Share or Unit | |||
Outstanding, beginning balance (in dollars per share) | $ 192.33 | ||
Granted (in dollars per share) | 225.58 | $ 202.10 | $ 195.66 |
Vested (in dollars per share) | 198.15 | ||
Forfeited (in dollars per share) | 201.41 | ||
Outstanding, ending balance (in dollars per share) | $ 211.16 | $ 192.33 |
STOCK OPTIONS AND OTHER SHARE_9
STOCK OPTIONS AND OTHER SHARE-BASED COMPENSATION - Performance Shares Unit Awards Activity (Details) - Performance Share Units - $ / shares | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Shares or Units | |||
Outstanding, beginning balance (in shares) | 458,171 | ||
Granted (in shares) | 163,660 | ||
Adjustment (in shares) | 148,950 | ||
Vested (in shares) | (198,600) | ||
Forfeited (in shares) | (47,838) | ||
Outstanding, ending balance (in shares) | 524,343 | 458,171 | |
Weighted-Average Grant Price Per Share or Unit | |||
Outstanding, beginning balance (in dollars per share) | $ 210.18 | ||
Granted (in dollars per share) | 258.83 | $ 201.32 | $ 228.29 |
Adjustment (in dollars per share) | 204.85 | ||
Vested (in dollars per share) | 204.85 | ||
Forfeited (in dollars per share) | 212.51 | ||
Outstanding, ending balance (in dollars per share) | $ 224.94 | $ 210.18 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Earnings Per Share [Abstract] | |||
Basic weighted average common shares outstanding (in shares) | 191.8 | 201.3 | 214 |
Impact of dilutive share-based awards (in shares) | 1.7 | 1.9 | 1.9 |
Diluted weighted average common shares outstanding (in shares) | 193.5 | 203.2 | 215.9 |
Weighted average anti-dilutive employee stock options outstanding (in shares) | 0.3 | 0.8 | 1.3 |
RESEARCH AND DEVELOPMENT (Detai
RESEARCH AND DEVELOPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Research and Development [Abstract] | |||
R&D costs | $ 603 | $ 692 | $ 684 |
LEASE COMMITMENTS - Lease Costs
LEASE COMMITMENTS - Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 151 | $ 172 | $ 176 |
Short-term and equipment lease cost | 21 | 20 | 7 |
Variable lease cost | 25 | 20 | 25 |
Other, net | 6 | 3 | 1 |
Total lease cost | $ 203 | $ 215 | $ 209 |
LEASE COMMITMENTS - Narrative (
LEASE COMMITMENTS - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Nov. 24, 2020 USD ($) engineer | Jan. 01, 2021 USD ($) | Dec. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | |||||
Impairment of goodwill and other assets | $ 802 | $ 207 | $ 767 | ||
CTS | |||||
Lessee, Lease, Description [Line Items] | |||||
Impairment of long-lived assets | 56 | ||||
Impairment charge for ROU asset | 19 | ||||
CTS | Aviation Systems | |||||
Lessee, Lease, Description [Line Items] | |||||
Impairment of long-lived assets | $ 145 | ||||
Commercial Aviation Solutions | |||||
Lessee, Lease, Description [Line Items] | |||||
Impairment of long-lived assets | 257 | ||||
Commercial Aviation Solutions | COVID | |||||
Lessee, Lease, Description [Line Items] | |||||
Impairment of long-lived assets | $ 103 | 103 | |||
Impairment charge for ROU asset | 31 | ||||
Impairment of goodwill and other assets | $ 257 | 257 | |||
Commercial Aviation Solutions | Lease Termination | COVID | |||||
Lessee, Lease, Description [Line Items] | |||||
Impairment charge for ROU asset | 5 | ||||
Parcel of land and manufacturing facility | CALIFORNIA | |||||
Lessee, Lease, Description [Line Items] | |||||
Gross proceeds from sale and leaseback transaction | $ 92 | ||||
Net Proceeds From Sale and Leaseback Transaction | 66 | ||||
Closing costs on sale and leaseback transaction | 2 | ||||
Residual value of guaranteed payment on sale and leaseback transaction | $ 24 | ||||
Term of lease contract | 16 months | ||||
Number of lease extension options | engineer | 2 | ||||
Term of lease extensions | 1 month | ||||
Pre-tax gain on sale and leaseback transaction | $ 22 |
LEASE COMMITMENTS - Supplementa
LEASE COMMITMENTS - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Operating lease right-of-use assets | $ 756 | $ 769 |
Other accrued items | 121 | 109 |
Operating lease liabilities | 741 | 768 |
Total operating lease liabilities | $ 862 | $ 877 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Operating lease liabilities | Operating lease liabilities |
Finance Leases | ||
Property, plant and equipment | $ 170 | $ 163 |
Accumulated amortization | (15) | (9) |
Property, plant and equipment, net | 155 | 154 |
Current portion of long-term debt | 5 | 4 |
Long-term debt | 165 | 157 |
Financing lease obligations and other debt | $ 170 | $ 161 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt, net | Current portion of long-term debt, net |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-Term Debt and Lease Obligation | Long-Term Debt and Lease Obligation |
LEASE COMMITMENTS - Supplemen_2
LEASE COMMITMENTS - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Net cash provided by operating activities - operating lease payments | $ 148 | $ 154 |
Net cash provided by operating activities - finance lease interest payments | 5 | 5 |
Net cash used in financing activities - finance lease obligation payments | 4 | 3 |
Assets obtained in exchange for new lease obligations | ||
ROU assets obtained with operating leases | 123 | 260 |
Property, plant and equipment obtained with finance leases | $ 20 | $ 120 |
Weighted average remaining lease term (in years) | ||
Operating leases | 9 years 3 months 18 days | 9 years 9 months 18 days |
Finance leases | 21 years 3 months 18 days | 23 years 9 months 18 days |
Weighted average discount rate | ||
Operating leases | 3.50% | 3.70% |
Finance leases | 3.40% | 3.10% |
LEASE COMMITMENTS - Future Leas
LEASE COMMITMENTS - Future Lease Payments Under Non-cancelable Operating and Finance Leases (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 145 | |
2024 | 143 | |
2025 | 118 | |
2026 | 89 | |
2027 | 82 | |
Thereafter | 420 | |
Total future lease payments required | 997 | |
Less: imputed interest | 135 | |
Total | 862 | $ 877 |
Finance Leases | ||
2023 | 11 | |
2024 | 11 | |
2025 | 11 | |
2026 | 11 | |
2027 | 10 | |
Thereafter | 187 | |
Total future lease payments required | 241 | |
Less: imputed interest | 71 | |
Financing lease obligations and other debt | 170 | $ 161 |
Lessee, Lease, Description [Line Items] | ||
Future lease payments for leases not yet commenced | $ 12 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract for lease commitments not yet commenced | 7 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Term of contract for lease commitments not yet commenced | 15 years |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) | 12 Months Ended | ||||||
Nov. 22, 2022 | Dec. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2021 USD ($) | Dec. 14, 2020 | Nov. 25, 2020 USD ($) | Jun. 29, 2019 derivativeInstrument | |
Derivative [Line Items] | |||||||
Debt instrument term | 3 years | ||||||
Accumulated comprehensive loss, net of tax | $ 288,000,000 | $ 146,000,000 | |||||
Interest Rate Contract | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Derivative asset, current | 15,000,000 | ||||||
Cash Flow Hedges | Foreign currency forward contracts | |||||||
Derivative [Line Items] | |||||||
Derivative notional amount | 275,000,000 | 328,000,000 | |||||
Net unrealized gains from cash flow hedges recognized in accumulated other comprehensive income | 22,000,000 | $ 12,000,000 | |||||
Net gains from cash flow hedges reclassified from accumulated other comprehensive income to earnings | 11,000,000 | 20,000,000 | |||||
Estimated amount of existing losses to be reclassified into earnings within the next 12 months | $ (8,000,000) | ||||||
Cash Flow Hedges | Treasury locks | |||||||
Derivative [Line Items] | |||||||
Accumulated comprehensive loss, net of tax | $ 58,000,000 | ||||||
Cash Flow Hedges | Treasury locks | L3Harris | |||||||
Derivative [Line Items] | |||||||
Number of open derivative contracts | derivativeInstrument | 2 | ||||||
Fixed-rate debt | 4.95% notes, due February 15, 2021 | |||||||
Derivative [Line Items] | |||||||
Debt interest rate | 4.95% | ||||||
Fixed-rate debt | 4.95% notes, due February 15, 2021 | Treasury Rate | |||||||
Derivative [Line Items] | |||||||
Debt interest rate | 4.95% | ||||||
Fixed-rate debt | 1.80% 2031 Notes, due January 15, 2031 (“1.80% 2031 Notes”) | |||||||
Derivative [Line Items] | |||||||
Debt interest rate | 1.80% | 1.80% | |||||
Aggregate principal amount of debt redeemed | $ 650,000,000 | ||||||
Fixed-rate debt | 1.80% 2031 Notes, due January 15, 2031 (“1.80% 2031 Notes”) | Treasury Rate | |||||||
Derivative [Line Items] | |||||||
Debt interest rate | 1.80% |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Instruments in Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 3 | $ 2 |
Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1 | 1 |
Other accrued items | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 10 | 5 |
Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 1 | $ 0 |
NON-OPERATING INCOME, NET (Deta
NON-OPERATING INCOME, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Nonoperating Income (Expense) [Abstract] | |||
Non-service FAS pension income | $ 441 | $ 445 | $ 389 |
Equity investment (losses) gains, net | (18) | 5 | 0 |
Impairment of equity method investment | 0 | (35) | 0 |
Other, net | 2 | 24 | 12 |
Total nonoperating income | $ 425 | $ 439 | $ 401 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 19,319 | $ 20,841 | $ 22,744 |
Other comprehensive loss before reclassifications to earnings, net of income taxes | (153) | 692 | (328) |
Losses (gains) reclassified to earnings, net of income taxes | 11 | 1 | (3) |
Other comprehensive income (loss) | (142) | 693 | (331) |
Ending balance | 18,624 | 19,319 | 20,841 |
Total AOCI | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (146) | (839) | (508) |
Other comprehensive (loss) income, before income taxes | (167) | 946 | |
Income taxes | 14 | (254) | |
Other comprehensive loss before reclassifications to earnings, net of income taxes | (153) | 692 | |
Losses (gains) reclassified to earnings, net of income taxes | 11 | 1 | |
Losses (gains) reclassified to earnings | 13 | 1 | |
Income taxes | (2) | 0 | |
Other comprehensive income (loss) | (142) | 693 | (331) |
Ending balance | (288) | (146) | (839) |
Foreign currency translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (118) | (58) | |
Other comprehensive (loss) income, before income taxes | (124) | (63) | |
Income taxes | 5 | 0 | |
Other comprehensive loss before reclassifications to earnings, net of income taxes | (119) | (63) | |
Losses (gains) reclassified to earnings, net of income taxes | 0 | 3 | |
Losses (gains) reclassified to earnings | 0 | 3 | |
Income taxes | 0 | 0 | |
Other comprehensive income (loss) | (119) | (60) | |
Ending balance | (237) | (118) | (58) |
Net unrealized losses on hedging derivatives | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (89) | (80) | |
Other comprehensive (loss) income, before income taxes | (10) | (4) | |
Income taxes | 2 | 1 | |
Other comprehensive loss before reclassifications to earnings, net of income taxes | (8) | (3) | |
Losses (gains) reclassified to earnings, net of income taxes | 18 | (6) | |
Losses (gains) reclassified to earnings | 22 | (8) | |
Income taxes | (4) | 2 | |
Other comprehensive income (loss) | 10 | (9) | |
Ending balance | (79) | (89) | (80) |
Unrecognized postretirement obligations | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 61 | (701) | |
Other comprehensive (loss) income, before income taxes | (33) | 1,013 | |
Income taxes | 7 | (255) | |
Other comprehensive loss before reclassifications to earnings, net of income taxes | (26) | 758 | |
Losses (gains) reclassified to earnings, net of income taxes | (7) | 4 | |
Losses (gains) reclassified to earnings | (9) | 6 | |
Income taxes | 2 | (2) | |
Other comprehensive income (loss) | (33) | 762 | |
Ending balance | $ 28 | $ 61 | $ (701) |
INCOME TAXES - Provision for Cu
INCOME TAXES - Provision for Current and Deferred Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Current: | |||
United States | $ 633 | $ 415 | $ 337 |
International | 82 | 70 | 76 |
State and local | 98 | 65 | 45 |
Current income taxes | 813 | 550 | 458 |
Deferred: | |||
United States | (523) | (55) | (150) |
International | (61) | (34) | (73) |
State and local | (17) | (21) | (1) |
Deferred income taxes | (601) | (110) | (224) |
Income Tax Expense (Benefit) | $ 212 | $ 440 | $ 234 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax Rates (Details) | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax rate | 21% | 21% | 21% |
State taxes | 2.20% | 1.80% | 3.20% |
International income | 0% | 0.40% | 0.40% |
Non-deductible goodwill impairment | 14.20% | 0.60% | 5.80% |
Research and development tax credit | (13.00%) | (5.90%) | (9.20%) |
FDII deduction | (5.10%) | (1.40%) | (1.30%) |
Change in valuation allowance | 0.10% | 0.90% | 0.50% |
Impact of divestitures and reorganizations | (1.30%) | 4.10% | 0% |
Equity-based compensation | (0.20%) | (1.10%) | (1.00%) |
Settlement of tax audits | (0.70%) | (1.10%) | (1.80%) |
Other items | (0.50%) | 0% | 0.10% |
Effective income tax rate | 16.70% | 19.30% | 17.70% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Jan. 03, 2020 | |
Income Tax Contingency [Line Items] | ||||
Outside basis difference in foreign subsidiaries that are considered indefinitely reinvested | $ 1,000 | |||
Tax loss and credit carryforwards, expiration period (less than) | 1 year | |||
Income from continuing operations before income taxes of international subsidiaries | $ 95 | $ 29 | $ (101) | |
Income taxes paid, net of (refunds) received | 309 | 358 | 394 | |
Unrecognized tax benefits | 613 | 587 | 542 | $ 438 |
Unrecognized tax benefits that would favorably impact future tax rates | 486 | 488 | ||
Interest and penalties recognized related to unrecognized tax benefits | 12 | 3 | $ 14 | |
Accrued interest and penalties related to unrecognized tax benefits | 59 | $ 47 | ||
Federal | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | 5 | |||
Tax credit carryforwards | 5 | |||
International | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | 70 | |||
Tax credit carryforwards | 8 | |||
State and Local | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | 7 | |||
Tax credit carryforwards | $ 103 |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2022 | Dec. 31, 2021 | |
Deferred tax assets: | ||
Accruals | $ 227 | $ 288 |
Tax loss and credit carryforwards | 194 | 174 |
Pension and other post-employment benefits | 13 | 107 |
Operating lease obligation | 239 | 245 |
Capitalized research and experimental expenditures | 646 | 0 |
Other | 359 | 329 |
Valuation allowance | (243) | (257) |
Deferred tax assets, net | 1,435 | 886 |
Deferred tax liabilities: | ||
Property, plant and equipment | (167) | (103) |
Acquired intangibles | (1,566) | (1,663) |
Operating lease right-of-use asset | (210) | (218) |
Other | (138) | (161) |
Deferred tax liabilities | (2,081) | (2,145) |
Net deferred tax liabilities | (646) | (1,259) |
Net increase in valuation allowance | $ 14 | $ 92 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets, Net of Valuation Allowance (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred income tax assets | $ 73 | $ 85 |
Deferred income tax liabilities | (719) | (1,344) |
Net deferred tax liabilities | $ (646) | $ (1,259) |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 587 | $ 542 | $ 438 |
Additions based on tax positions taken during current period | 124 | 115 | 60 |
Additions based on tax positions taken during prior periods | 4 | 11 | 21 |
Additions for tax positions related to acquired entities | 0 | 0 | 116 |
Decreases based on tax positions taken during prior periods | (76) | (64) | (82) |
Decreases from lapse in statutes of limitations | (6) | (15) | (3) |
Decreases from settlements | (20) | (2) | (8) |
Balance at end of period | $ 613 | $ 587 | $ 542 |
BACKLOG (Details)
BACKLOG (Details) - USD ($) $ in Billions | Dec. 30, 2022 | Dec. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Backlog | $ 22.3 | $ 21.1 |
Remaining performance obligation percentage, two years | 75% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation percentage | 55% | |
Expected timing of satisfaction period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation percentage | 20% | |
Expected timing of satisfaction period | 1 year |
BUSINESS SEGMENTS - Narrative (
BUSINESS SEGMENTS - Narrative (Details) $ in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 30, 2022 USD ($) segment | Dec. 31, 2021 USD ($) segment | Jan. 01, 2021 USD ($) | Dec. 31, 2021 segment | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 3 | 4 | 4 | |
Number of operating segments | segment | 3 | 4 | 4 | |
Revenue | $ 17,062 | $ 17,814 | $ 18,194 | |
Amortization of intangible assets, debt premium, debt discount and debt issuance costs | 596 | 624 | 714 | |
International | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,689 | $ 1,580 | $ 1,196 | |
Revenue from Contract with Customer Benchmark | Government Contracts Concentration Risk | U.S. Government | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 74% | 75% | 78% | |
Revenue from Contract with Customer, Segment Benchmark | Product Concentration Risk | Integrated Mission Systems | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 37% | |||
Revenue from Contract with Customer, Segment Benchmark | Product Concentration Risk | Space & Airborne Systems | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 27% | |||
Revenue from Contract with Customer, Segment Benchmark | Product Concentration Risk | Communication Systems | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 19% | |||
Revenue from Contract with Customer, Product and Service Benchmark | Geographic Concentration Risk | International | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 23% | 22% | 20% | |
Revenue | $ 3,900 | $ 3,900 | $ 3,700 |
BUSINESS SEGMENTS - Revenues an
BUSINESS SEGMENTS - Revenues and Income From Continuing Operations by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 17,062 | $ 17,814 | $ 18,194 |
Income from Continuing Operations before Income Taxes | |||
Segment Operating Income (Loss) | 1,826 | 2,774 | 2,162 |
Unallocated Items [Abstract] | |||
Unallocated corporate department expense, net | 25 | (51) | (69) |
Amortization of acquisition-related intangibles | (605) | (627) | (709) |
L3Harris Merger-related integration expenses | (90) | (134) | (140) |
Acquisition-related transaction and integration expenses | (9) | 0 | 0 |
Pre-acquisition and other divestiture-related expenses | (63) | (71) | 10 |
Additional cost of sales related to fair value step-up in inventory sold | 0 | 0 | (31) |
Business divestiture-related gains (losses), net | 0 | 220 | (51) |
Gain on sale of asset group | 8 | 0 | 0 |
Impairment of goodwill and other assets | 0 | (125) | (132) |
Charges for severance and other termination costs | (29) | 0 | 0 |
Charges related to an additional pre-merger legal contingency | (31) | 0 | 0 |
FAS/CAS pension adjustment | 95 | 123 | 135 |
Total unallocated expenses | (699) | (665) | (987) |
Non-operating income, net | 425 | 439 | 401 |
Net interest expense | (279) | (265) | (254) |
Income from continuing operations before income taxes | 1,273 | 2,283 | 1,322 |
Income from emission reduction projects | 13 | ||
Goodwill impairment | 802 | 62 | |
FAS pension service cost | (46) | (68) | |
FAS/CAS operating adjustment | 95 | 123 | 135 |
Pension Plan | |||
Unallocated Items [Abstract] | |||
Deferred compensation plan income (loss) | 29 | ||
FAS pension service cost | (44) | (66) | (65) |
Plans Under US Government Contracts | Pension Plan | |||
Unallocated Items [Abstract] | |||
FAS/CAS pension adjustment | 95 | 123 | 135 |
FAS pension service cost | (46) | (68) | (67) |
Less: CAS pension cost | (141) | (191) | (202) |
FAS/CAS operating adjustment | 95 | 123 | 135 |
Non-service FAS pension income | 441 | 445 | 388 |
FAS/CAS pension adjustment, net | 536 | 568 | 523 |
CAS | |||
Unallocated Items [Abstract] | |||
Impairment of intangible assets | 113 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Unallocated Items [Abstract] | |||
Gain on sale of asset group | 8 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | CPS business | |||
Unallocated Items [Abstract] | |||
Goodwill impairment | 62 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | CTS | |||
Unallocated Items [Abstract] | |||
Impairment of identifiable assets | 63 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | VSE disposal group | |||
Unallocated Items [Abstract] | |||
Goodwill impairment | 14 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Applied Kilovolts Business | |||
Unallocated Items [Abstract] | |||
Goodwill impairment | 5 | ||
Integrated Mission Systems | |||
Unallocated Items [Abstract] | |||
Goodwill impairment | 447 | 0 | |
Space & Airborne Systems | |||
Unallocated Items [Abstract] | |||
Goodwill impairment | 0 | 0 | |
Communication Systems | |||
Unallocated Items [Abstract] | |||
Goodwill impairment | 355 | 0 | |
Operating segments | Integrated Mission Systems | |||
Segment Reporting Information [Line Items] | |||
Revenue | 6,916 | 7,042 | 6,793 |
Income from Continuing Operations before Income Taxes | |||
Segment Operating Income (Loss) | 424 | 866 | 205 |
Operating segments | Space & Airborne Systems | |||
Segment Reporting Information [Line Items] | |||
Revenue | 6,060 | 5,965 | 5,823 |
Income from Continuing Operations before Income Taxes | |||
Segment Operating Income (Loss) | 735 | 761 | 762 |
Operating segments | Communication Systems | |||
Segment Reporting Information [Line Items] | |||
Revenue | 4,217 | 4,287 | 4,402 |
Income from Continuing Operations before Income Taxes | |||
Segment Operating Income (Loss) | 667 | 1,043 | 1,035 |
Other non-reportable business segments | |||
Segment Reporting Information [Line Items] | |||
Revenue | 0 | 683 | 1,347 |
Income from Continuing Operations before Income Taxes | |||
Segment Operating Income (Loss) | 0 | 104 | 160 |
Corporate non-segment | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ (131) | $ (163) | $ (171) |
BUSINESS SEGMENTS - Disaggregat
BUSINESS SEGMENTS - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 17,062 | $ 17,814 | $ 18,194 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 15,373 | 16,234 | 16,998 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,689 | 1,580 | 1,196 |
Integrated Mission Systems | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 6,916 | 7,042 | 6,793 |
Integrated Mission Systems | Transferred over Time | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,096 | 5,102 | 5,347 |
Integrated Mission Systems | Transferred over Time | International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,759 | 1,879 | 1,396 |
Integrated Mission Systems | Transferred over Time | Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,161 | 5,316 | 5,035 |
Integrated Mission Systems | Transferred over Time | Cost-reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,694 | 1,665 | 1,708 |
Integrated Mission Systems | Transferred over Time | Prime contractor | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 4,488 | 4,738 | 4,470 |
Integrated Mission Systems | Transferred over Time | Subcontractor | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,367 | 2,243 | 2,273 |
Integrated Mission Systems | Intersegment | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 61 | 61 | 50 |
Space & Airborne Systems | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 6,060 | 5,965 | 5,823 |
Space & Airborne Systems | Transferred over Time | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,323 | 5,250 | 5,022 |
Space & Airborne Systems | Transferred over Time | International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 712 | 703 | 783 |
Space & Airborne Systems | Transferred over Time | Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,710 | 3,697 | 3,612 |
Space & Airborne Systems | Transferred over Time | Cost-reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,325 | 2,256 | 2,193 |
Space & Airborne Systems | Transferred over Time | Prime contractor | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,818 | 3,679 | 3,425 |
Space & Airborne Systems | Transferred over Time | Subcontractor | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,217 | 2,274 | 2,380 |
Space & Airborne Systems | Intersegment | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 25 | 12 | 18 |
Communication Systems | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 4,217 | 4,287 | 4,402 |
Communication Systems | Transferred at Point in Time | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,735 | 3,001 | 3,138 |
Communication Systems | Transferred at Point in Time | International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,437 | 1,232 | 1,220 |
Communication Systems | Transferred at Point in Time | Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,552 | 3,631 | 3,736 |
Communication Systems | Transferred at Point in Time | Cost-reimbursable | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 620 | 602 | 622 |
Communication Systems | Transferred at Point in Time | Prime contractor | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,829 | 2,886 | 3,054 |
Communication Systems | Transferred at Point in Time | Subcontractor | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,343 | 1,347 | 1,304 |
Communication Systems | Intersegment | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 45 | $ 54 | $ 44 |
BUSINESS SEGMENTS - Total Asset
BUSINESS SEGMENTS - Total Assets by Segment (Details) - USD ($) $ in Millions | Dec. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Assets | $ 33,524 | $ 34,709 |
Identifiable intangible assets acquired | 6,001 | 6,640 |
Operating segments | Integrated Mission Systems | ||
Segment Reporting Information [Line Items] | ||
Assets | 11,283 | 11,830 |
Operating segments | Space & Airborne Systems | ||
Segment Reporting Information [Line Items] | ||
Assets | 8,475 | 8,151 |
Operating segments | Communication Systems | ||
Segment Reporting Information [Line Items] | ||
Assets | 5,800 | 6,035 |
Operating segments | Aviation Systems | ||
Segment Reporting Information [Line Items] | ||
Assets | 0 | 3 |
Corporate non-segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 7,966 | 8,690 |
Identifiable intangible assets acquired | $ 6,000 | $ 6,600 |
BUSINESS SEGMENTS - Geographic
BUSINESS SEGMENTS - Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Segment Reporting Information [Line Items] | |||
Capital Expenditures | $ 252 | $ 342 | $ 368 |
Depreciation and Amortization | 938 | 967 | 1,032 |
U.S. operations | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 1,896 | 1,870 | 1,949 |
International operations | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 208 | 231 | 153 |
Operating segments | Integrated Mission Systems | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 61 | 93 | 108 |
Depreciation and Amortization | 83 | 98 | 105 |
Operating segments | Space & Airborne Systems | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 117 | 131 | 122 |
Depreciation and Amortization | 105 | 103 | 100 |
Operating segments | Communication Systems | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 36 | 56 | 58 |
Depreciation and Amortization | 47 | 49 | 61 |
Operating segments | Other segments | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 0 | 4 | 16 |
Depreciation and Amortization | 0 | 8 | 34 |
Corporate non-segment | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 38 | 58 | 64 |
Depreciation and Amortization | $ 703 | $ 709 | $ 732 |
LEGAL PROCEEDINGS AND CONTING_2
LEGAL PROCEEDINGS AND CONTINGENCIES (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |
Sep. 30, 2019 USD ($) | Mar. 31, 2016 USD ($) responsible_party | Dec. 31, 2021 USD ($) | |
Exelis | Passaic River Alaska | |||
Loss Contingencies [Line Items] | |||
Number of potentially responsible parties notified (over 100) | responsible_party | 100 | ||
Estimated cost for all participating parties of EPA's preferred alternative | $ 1,380 | $ 441 | |
U.S. Export Control Violations | Settled Litigation | |||
Loss Contingencies [Line Items] | |||
Civil penalty amount | $ 13 | ||
Civil penalty payment period | 3 years | ||
Civil penalty suspended amount conditioned to remedial compliance | $ 6.5 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jan. 03, 2023 | Nov. 22, 2022 | Dec. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Business Acquisition [Line Items] | |||||
Debt instrument term | 3 years | ||||
Proceeds from issuance of long-term debt | $ 4 | $ 6 | $ 901 | ||
Secured Debt | Term loan, due November 21, 2025 | |||||
Business Acquisition [Line Items] | |||||
Debt instrument term | 3 years | ||||
Secured Debt | Term loan, due November 21, 2025 | Line of Credit | Secured Overnight Financing Rate (SOFR) | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.10% | ||||
Secured Debt | Term loan, due November 21, 2025 | Line of Credit | Senior Debt Ratings | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.25% | ||||
Secured Debt | Term loan, due November 21, 2025 | Line of Credit | Base Rate | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.25% | ||||
Subsequent Event | Secured Debt | Term loan, due November 21, 2025 | Line of Credit | |||||
Business Acquisition [Line Items] | |||||
Proceeds from issuance of long-term debt | $ 2,000 | ||||
Subsequent Event | TDL | |||||
Business Acquisition [Line Items] | |||||
Asset acquisition, consideration transferred | $ 1,960 |
SUBSEQUENT EVENTS (Details)_2
SUBSEQUENT EVENTS (Details) $ in Millions | 12 Months Ended | ||||
Jan. 03, 2023 USD ($) | Nov. 22, 2022 loanDraw | Dec. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||
Debt instrument term | 3 years | ||||
Proceeds from issuance of long-term debt | $ 4 | $ 6 | $ 901 | ||
Secured Debt | Term loan, due November 21, 2025 | |||||
Business Acquisition [Line Items] | |||||
Debt instrument term | 3 years | ||||
Number of separate draws on loan commitment | loanDraw | 2 | ||||
Secured Debt | Term loan, due November 21, 2025 | Line of Credit | Secured Overnight Financing Rate (SOFR) | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.10% | ||||
Secured Debt | Term loan, due November 21, 2025 | Line of Credit | Senior Debt Ratings | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.25% | ||||
Secured Debt | Term loan, due November 21, 2025 | Line of Credit | Base Rate | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.25% | ||||
Subsequent Event | Secured Debt | Term loan, due November 21, 2025 | Line of Credit | |||||
Business Acquisition [Line Items] | |||||
Proceeds from issuance of long-term debt | $ 2,000 | ||||
Subsequent Event | TDL | |||||
Business Acquisition [Line Items] | |||||
Asset acquisition, consideration transferred | $ 1,960 |