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Business Segments
 3 Months Ended
Apr. 04, 2025
Segment Reporting [Abstract]  
Business Segments
Note 10–Business Segments
Our operations and reportable segments are organized around the customers and markets we serve. We define our reportable segments based on the way the chief operating decision maker ("CODM"), currently our Chief Executive Officer, manages operations for the purposes of allocating resources and assessing performance. The CODM considers segment revenue and operating income to assist with the evaluation of strategic business decisions, including potential acquisitions or divestitures, whether to invest in certain products or services, share repurchases and the declaration of dividends.
The following table summarizes business segment information for the periods presented:
Three Months Ended April 4, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Revenues$1,878 $1,291 $568 $508 $4,245 
Less:
Direct labor503 244 103 109 959 
Amortization of intangible assets5 6 7 12 30 
Other segment expense1,185 742 421 353 2,701 
Segment operating income$185 $299 $37 $34 $555 
Corporate expense25 
Total operating income$530 
Three Months Ended March 29, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Revenues$1,793 $1,199 $509 $474 $3,975 
Less:
Direct labor
479 236 100 101 916 
Amortization of intangible assets6 6 8 17 37 
Other segment expense1,133 735 367 335 2,570 
Segment operating income$175 $222 $34 $21 $452 
Corporate expense
37 
Total operating income$415 
The statement of operations performance measures used to evaluate segment performance are revenues and operating income. As a result, "Interest expense, net," "Other (expense) income, net" and "Income tax expense" as reported in the condensed consolidated statements of operations are not allocated to our segments.
Other segment expenses include direct program costs such as material and subcontractor expenses, as well as allocable indirect costs such as depreciation and Corporate compensation expenses, but excludes direct labor which is separately presented above. The Health & Civil and Defense Systems segments also include equity earnings of non-consolidated subsidiaries within operating income.
Under U.S. Government Cost Accounting Standards, indirect costs including depreciation expense are collected in indirect cost pools, which are then collectively allocated to the reportable segments based on a representative causal or beneficial relationship of the costs in the pool to the costs in the base. As such, depreciation expense is not separately disclosed on the condensed consolidated statements of operations.
Asset information by segment is not a key measure of performance used by the CODM.