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BUSINESS SEGMENT INFORMATION (Tables) | 6 Months Ended
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Jun. 27, 2025
Segment Reporting [Abstract] |
Schedule of Selected Financial Information by Business Segments | The following table presents operating results by business segment and a reconciliation to total income before income taxes:
| Second Quarter |  | Year to Date
(In millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Revenue |  |  |  |  |  |  |
CS | $ | 1,376 |  |  | $ | 1,346 |  |  | $ | 2,728 |  |  | $ | 2,640 |
IMS | 1,622 |  |  | 1,671 |  |  | 3,214 |  |  | 3,298 |
SAS | 1,787 |  |  | 1,707 |  |  | 3,398 |  |  | 3,458 |
AR | 698 |  |  | 633 |  |  | 1,327 |  |  | 1,217 |
Other(1) | (57) |  |  | (58) |  |  | (109) |  |  | (103) |
Total revenue | 5,426 |  |  | 5,299 |  |  | 10,558 |  |  | 10,510 |
Cost of revenue |  |  |  |  |  |  |
CS | $ | (870) |  |  | $ | (876) |  |  | $ | (1,726) |  |  | $ | (1,713) |
IMS | (1,296) |  |  | (1,292) |  |  | (2,500) |  |  | (2,540) |
SAS | (1,406) |  |  | (1,329) |  |  | (2,687) |  |  | (2,695) |
AR | (549) |  |  | (488) |  |  | (1,038) |  |  | (931) |
Other (1) | 30 |  |  | 46 |  |  | 78 |  |  | 77 |
Total cost of revenue | (4,091) |  |  | (3,939) |  |  | (7,873) |  |  | (7,802) |
Other segment costs(2) |  |  |  |  |  |  |
CS | $ | (170) |  |  | $ | (141) |  |  | $ | (321) |  |  | $ | (288) |
IMS(3) | (112) |  |  | (179) |  |  | (297) |  |  | (373) |
SAS | (161) |  |  | (163) |  |  | (315) |  |  | (332) |
AR | (56) |  |  | (64) |  |  | (120) |  |  | (128) |
Other(1) | 27 |  |  | 12 |  |  | 31 |  |  | 26 |
Total other segment costs | (472) |  |  | (535) |  |  | (1,022) |  |  | (1,095) |
Operating income |  |  |  |  |  |  |
CS | $ | 336 |  |  | $ | 329 |  |  | $ | 681 |  |  | $ | 639 |
IMS | 214 |  |  | 200 |  |  | 417 |  |  | 385 |
SAS | 220 |  |  | 215 |  |  | 396 |  |  | 431 |
AR | 93 |  |  | 81 |  |  | 169 |  |  | 158 |
Unallocated corporate expenses | (292) |  |  | (349) |  |  | (567) |  |  | (759) |
Total operating income | 571 |  |  | 476 |  |  | 1,096 |  |  | 854 |
Non-service FAS pension income and other, net | 105 |  |  | 86 |  |  | 189 |  |  | 174 |
Interest expense, net | (152) |  |  | (172) |  |  | (302) |  |  | (348) |
Income before income taxes | $ | 524 |  |  | $ | 390 |  |  | $ | 983 |  |  | $ | 680 |
_____________ (1) Includes corporate headquarters and intersegment eliminations. (2) Other segment costs consist of company-funded R&D costs, selling and marketing costs and other General and Administrative (“G&A”) expenses, which include a portion of depreciation and amortization expenses that are disclosed by segment under the “Other Financial Information” heading below in this Note. (3) Second quarter and year to date 2025 reflect a $75 million gain recognized in connection with the monetization of certain legacy end-of-life assets.
Schedule of Disaggregation of Revenue by Segment | The following table presents capital expenditures and depreciation and amortization by business segment:
| Second Quarter |  | Year to Date
(In millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Capital Expenditures |  |  |  |  |  |  |
CS | $ | 14 |  |  | $ | 12 |  |  | $ | 21 |  |  | $ | 18 |
IMS | 15 |  |  | 28 |  |  | 35 |  |  | 68 |
SAS | 24 |  |  | 31 |  |  | 43 |  |  | 84 |
AR | 18 |  |  | 10 |  |  | 29 |  |  | 15 |
Corporate | 17 |  |  | 16 |  |  | 19 |  |  | 27 |
Total capital expenditures | $ | 88 |  |  | $ | 97 |  |  | $ | 147 |  |  | $ | 212 |
Depreciation and Amortization |  |  |  |  |  |  |
CS | $ | 13 |  |  | $ | 14 |  |  | $ | 26 |  |  | $ | 28 |
IMS | 17 |  |  | 15 |  |  | 32 |  |  | 31 |
SAS | 33 |  |  | 27 |  |  | 66 |  |  | 57 |
AR | 13 |  |  | 14 |  |  | 25 |  |  | 23 |
Corporate | 227 |  |  | 249 |  |  | 455 |  |  | 500 |
Total depreciation and amortization | $ | 303 |  |  | $ | 319 |  |  | $ | 604 |  |  | $ | 639 |
We disaggregate revenue for all four 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.
| Second Quarter
| 2025 |  | 2024
(In millions) | CS |  | IMS |  | SAS |  | AR |  | CS |  | IMS |  | SAS |  | AR
Revenue By Customer Relationship
Prime contractor | $ | 1,032 |  |  | $ | 1,171 |  |  | $ | 1,108 |  |  | $ | 161 |  |  | $ | 915 |  |  | $ | 1,084 |  |  | $ | 1,076 |  |  | $ | 168 |
Subcontractor(1) | 327 |  |  | 429 |  |  | 666 |  |  | 532 |  |  | 409 |  |  | 574 |  |  | 618 |  |  | 455 |
Intersegment | 17 |  |  | 22 |  |  | 13 |  |  | 5 |  |  | 22 |  |  | 13 |  |  | 13 |  |  | 10 |
Total segment | $ | 1,376 |  |  | $ | 1,622 |  |  | $ | 1,787 |  |  | $ | 698 |  |  | $ | 1,346 |  |  | $ | 1,671 |  |  | $ | 1,707 |  |  | $ | 633 |
Revenue By Contract Type
Fixed-price(2) | $ | 1,158 |  |  | $ | 1,248 |  |  | $ | 1,195 |  |  | $ | 450 |  |  | $ | 1,118 |  |  | $ | 1,304 |  |  | $ | 1,072 |  |  | $ | 380 |
Cost-type | 201 |  |  | 352 |  |  | 579 |  |  | 243 |  |  | 206 |  |  | 354 |  |  | 622 |  |  | 243 |
Intersegment | 17 |  |  | 22 |  |  | 13 |  |  | 5 |  |  | 22 |  |  | 13 |  |  | 13 |  |  | 10 |
Total segment | $ | 1,376 |  |  | $ | 1,622 |  |  | $ | 1,787 |  |  | $ | 698 |  |  | $ | 1,346 |  |  | $ | 1,671 |  |  | $ | 1,707 |  |  | $ | 633 |
Revenue By Geographical Region
United States | $ | 903 |  |  | $ | 1,234 |  |  | $ | 1,567 |  |  | $ | 597 |  |  | $ | 886 |  |  | $ | 1,221 |  |  | $ | 1,488 |  |  | $ | 613 |
International | 456 |  |  | 366 |  |  | 207 |  |  | 96 |  |  | 438 |  |  | 437 |  |  | 206 |  |  | 10 |
Intersegment | 17 |  |  | 22 |  |  | 13 |  |  | 5 |  |  | 22 |  |  | 13 |  |  | 13 |  |  | 10 |
Total segment | $ | 1,376 |  |  | $ | 1,622 |  |  | $ | 1,787 |  |  | $ | 698 |  |  | $ | 1,346 |  |  | $ | 1,671 |  |  | $ | 1,707 |  |  | $ | 633 |
| Year to Date
| 2025 |  | 2024
(In millions) | CS |  | IMS |  | SAS |  | AR |  | CS |  | IMS |  | SAS |  | AR
Revenue By Customer Relationship
Prime contractor | $ | 2,027 |  |  | $ | 2,220 |  |  | $ | 2,116 |  |  | $ | 300 |  |  | $ | 1,828 |  |  | $ | 2,140 |  |  | $ | 2,184 |  |  | $ | 331 |
Subcontractor(1) | 672 |  |  | 959 |  |  | 1,252 |  |  | 1,012 |  |  | 776 |  |  | 1,134 |  |  | 1,246 |  |  | 871 |
Intersegment | 29 |  |  | 35 |  |  | 30 |  |  | 15 |  |  | 36 |  |  | 24 |  |  | 28 |  |  | 15 |
Total segment | $ | 2,728 |  |  | $ | 3,214 |  |  | $ | 3,398 |  |  | $ | 1,327 |  |  | $ | 2,640 |  |  | $ | 3,298 |  |  | $ | 3,458 |  |  | $ | 1,217 |
Revenue By Contract Type
Fixed-price(2) | $ | 2,319 |  |  | $ | 2,503 |  |  | $ | 2,189 |  |  | $ | 842 |  |  | $ | 2,183 |  |  | $ | 2,549 |  |  | $ | 2,180 |  |  | $ | 715 |
Cost-type | 380 |  |  | 676 |  |  | 1,179 |  |  | 470 |  |  | 421 |  |  | 725 |  |  | 1,250 |  |  | 487 |
Intersegment | 29 |  |  | 35 |  |  | 30 |  |  | 15 |  |  | 36 |  |  | 24 |  |  | 28 |  |  | 15 |
Total segment | $ | 2,728 |  |  | $ | 3,214 |  |  | $ | 3,398 |  |  | $ | 1,327 |  |  | $ | 2,640 |  |  | $ | 3,298 |  |  | $ | 3,458 |  |  | $ | 1,217 |
Revenue By Geographical Region
United States | $ | 1,747 |  |  | $ | 2,381 |  |  | $ | 2,943 |  |  | $ | 1,206 |  |  | $ | 1,811 |  |  | $ | 2,387 |  |  | $ | 2,995 |  |  | $ | 1,177 |
International | 952 |  |  | 798 |  |  | 425 |  |  | 106 |  |  | 793 |  |  | 887 |  |  | 435 |  |  | 25 |
Intersegment | 29 |  |  | 35 |  |  | 30 |  |  | 15 |  |  | 36 |  |  | 24 |  |  | 28 |  |  | 15 |
Total segment | $ | 2,728 |  |  | $ | 3,214 |  |  | $ | 3,398 |  |  | $ | 1,327 |  |  | $ | 2,640 |  |  | $ | 3,298 |  |  | $ | 3,458 |  |  | $ | 1,217 |
_______________ (1) Includes products and services to contractors whose customers are the end user. (2) Includes revenue derived from time-and-materials contracts.
Schedule of Total Assets by Segment | Total assets by business segment were as follows:
(In millions) | June 27, 2025 |  | January 3, 2025
CS | $ | 7,106 |  |  | $ | 7,060 |
IMS | 9,667 |  |  | 10,389 |
SAS | 9,317 |  |  | 8,705 |
AR | 4,823 |  |  | 4,826 |
Corporate(1) | 10,327 |  |  | 11,021 |
Total assets | $ | 41,240 |  |  | $ | 42,001 |
_______________ (1)Includes intangible assets acquired in connection with business combinations that benefit the entire Company of $7,261 million and $7,639 million as of June 27, 2025 and January 3, 2025, respectively. Corporate assets also include cash, income taxes receivable, deferred income taxes, deferred compensation plan assets, buildings and equipment and real estate held for development and leasing.

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