## Table

|  | Defense Solutions | Civil | Health | Total |
|---|---|---|---|---|
|  |  | (in millions) |  |  |
| Goodwill at December 29, 2017(1) | $2,055 | $1,998 | $921 | $4,974 |
| Foreign currency translation adjustments | (40) | (11) | — | (51) |
| Transfers to assets held for sale | — | (57) | — | (57) |
| Adjustment to goodwill | — | (6) | — | (6) |
| Goodwill at December 28, 2018(1) | 2,015 | 1,924 | 921 | 4,860 |
| Goodwill re-allocation | 25 | (25) | — | — |
| Acquisition of IMX | — | — | 50 | 50 |
| Divestiture of health staff augmentation business | — | — | (5) | (5) |
| Foreign currency translation adjustments | (4) | 8 | — | 4 |
| Adjustment to goodwill | 3 | — | — | 3 |
| Goodwill at January 3, 2020(1) | $2,039 | $1,907 | $966 | $4,912 |



## Text

Note 10—Goodwill


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


Effective the beginning of fiscal 2019, the Company changed the composition of its Defense Solutions reportable segment, which resulted in the identification of new operating segments and reporting units within Defense Solutions. In addition, certain contracts were reassigned between the Civil and Defense Solutions reportable segments (see "Note 24—Business Segments"). Consequently, the carrying amount of goodwill was re-allocated among the reporting units for the purpose of testing goodwill for impairment.


In conjunction with the changes mentioned above, the Company evaluated goodwill for impairment using a quantitative step one analysis, both before and after the changes were made, and determined that goodwill was not impaired.


In fiscal 2019, the Company performed a qualitative analysis for all reporting units and determined that it was more likely than not that the fair values of the reporting units were in excess of the individual reporting units carrying values, and as a result, a quantitative step one analysis was not necessary.


In fiscal 2018, the Company performed a qualitative and quantitative analysis on its reporting units. Based on the qualitative analysis performed during the Company's annual impairment evaluation for fiscal 2018 for certain of its reporting units, it was determined that it was more likely than not that the fair values of the reporting units were in excess of the individual reporting unit carrying values, and as a result, a quantitative step one analysis was not necessary.


Additionally, based on the results of the quantitative step one analysis for certain other of its reporting units, it was determined that the fair value was in excess of the individual reporting units carrying values. In fiscal 2017, the Company performed a quantitative analysis for all reporting units. It was determined that the fair values of all reporting units exceeded their carrying values.


As a result, no goodwill impairments were identified as part of the annual goodwill impairment evaluation for the periods mentioned above. During the year ended January 3, 2020 and December 28, 2018, the Company recorded an immaterial correction of $3 million and $6 million, respectively, with respect to fair value of assets and liabilities acquired from the IS&GS Transactions.


(1) Carrying amount includes accumulated impairment losses of $369 million and $117 million within the Health and Civil segments, respectively.