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Revenues
 3 Months Ended
Apr. 04, 2025
Revenue from Contract with Customer [Abstract]  
Revenues
Note 2–Revenues
REMAINING PERFORMANCE OBLIGATIONS
Remaining performance obligations ("RPO") represent the expected value of exercised contracts, both funded and unfunded, less revenue recognized to date. RPO does not include unexercised option periods and future potential task orders expected to be awarded under indefinite delivery/indefinite quantity ("IDIQ") contracts, General Services Administration Schedule or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded and separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.
As of April 4, 2025, we had $17 billion of RPO and expect to recognize approximately 65% and 81% over the next 12 months and 24 months, respectively, with the remainder to be recognized thereafter.
DISAGGREGATION OF REVENUES
We disaggregate revenues by customer-type, contract-type and geographic location for each of our reportable segments.
Disaggregated revenues by customer-type were as follows:
Three Months Ended April 4, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
DoD and U.S. Intelligence Community
$1,326 $269 $10 $454 $2,059 
Other U.S. government agencies(1)
516 999 97 24 1,636 
Commercial and non-U.S. customers
25 18 460 30 533 
Total$1,867 $1,286 $567 $508 $4,228 
Three Months Ended March 29, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
DoD and U.S. Intelligence Community
$1,221 $257 $10 $425 $1,913 
Other U.S. government agencies(1)
525 917 73 22 1,537 
Commercial and non-U.S. customers
33 16 425 27 501 
Total$1,779 $1,190 $508 $474 $3,951 
(1) Includes federal government agencies other than the DoD and U.S. Intelligence Community, as well as state and local government agencies.
Disaggregated revenues by contract-type were as follows:
Three Months Ended April 4, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Cost-reimbursement and fixed-price-incentive-fee
$1,013 $471 $95 $309 $1,888 
Firm-fixed-price497 759 359 154 1,769 
Time-and-materials and fixed-price-level-of-effort
357 56 113 45 571 
Total$1,867 $1,286 $567 $508 $4,228 
Three Months Ended March 29, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Cost-reimbursement and fixed-price-incentive-fee
$946 $447 $85 $301 $1,779 
Firm-fixed-price492 690 319 139 1,640 
Time-and-materials and fixed-price-level-of-effort
341 53 104 34 532 
Total$1,779 $1,190 $508 $474 $3,951 
Disaggregated revenues by geographic location were as follows:
Three Months Ended April 4, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
United States
$1,859 $1,285 $238 $499 $3,881 
International
8 1 329 9 347 
Total$1,867 $1,286 $567 $508 $4,228 
Three Months Ended March 29, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
United States
$1,770 $1,189 $208 $468 $3,635 
International
9 1 300 6 316 
Total$1,779 $1,190 $508 $474 $3,951 
Revenues by customer-type, contract-type and geographic location exclude lease income of $17 million and $24 million for the three months ended April 4, 2025, and March 29, 2024, respectively.
CONTRACT ASSETS AND LIABILITIES
Performance obligations are satisfied either over time as work progresses or at a point in time. Firm-fixed-price contracts are typically billed to the customer using milestone payments while cost-reimbursable and time and materials contracts are typically billed to the customer on a monthly or bi-weekly basis as indicated by the negotiated billing terms and conditions of the contract. As a result, the timing of revenue recognition, customer billings and cash collections for each contract results in a net contract asset or liability at the end of each reporting period.
Contract assets consist of unbilled receivables, which is the amount of revenue recognized that exceeds the amount billed to the customer. Unbilled receivables exclude amounts billable where the right to consideration is solely subject to the passage of time. Contract liabilities consist of deferred revenue, which represents cash advances received prior to performance for programs and billings in excess of revenue recognized.
The components of contract assets and contract liabilities consisted of the following:
(in millions)Balance sheet line itemApril 4,
2025		January 3,
2025
Contract assets - current:
Unbilled receivablesReceivables, net$865 $842 
Contract liabilities - current:
Deferred revenue(1)
Accounts payable and accrued liabilities$368 $333 
Contract liabilities - non-current:
Deferred revenue(1)
Other long-term liabilities$8 $10 
(1) Certain contracts record revenue net of cost of revenues, and therefore, the respective deferred revenue balance will not fully convert to revenue.
The increase in unbilled receivables was primarily due revenue recognized on certain contracts, partially offset the timing of billings on certain contracts. The increase in deferred revenue was primarily due to the timing of advanced payments from customers, offset by revenue recognized during the period.
For the three months ended April 4, 2025, $137 million of revenue recognized was included as a contract liability at January 3, 2025. For the three months ended March 29, 2024, $157 million of revenue recognized was included as a contract liability at December 29, 2023.