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Revenues
 6 Months Ended
Jul. 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 July 4, 2025, we had $16 billion of RPO and expect to recognize approximately 61% and 80% 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 July 4, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
DoD and U.S. Intelligence Community
$1,324 $253 $2 $486 $2,065 
Other U.S. government agencies(1)
507 995 99 23 1,624 
Commercial and non-U.S. customers
26 19 465 34 544 
Total$1,857 $1,267 $566 $543 $4,233 
Three Months Ended June 28, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
DoD and U.S. Intelligence Community
$1,247 $255 $4 $441 $1,947 
Other U.S. government agencies(1)
520 986 81 24 1,611 
Commercial and non-U.S. customers
28 16 475 30 549 
Total$1,795 $1,257 $560 $495 $4,107 
(1) Includes federal government agencies other than the DoD and U.S. Intelligence Community, as well as state and local government agencies.
Six Months Ended July 4, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
DoD and U.S. Intelligence Community$2,650 $522 $12 $940 $4,124 
Other U.S. government agencies(1)
1,023 1,994 196 47 3,260 
Commercial and non-U.S. customers51 37 925 64 1,077 
Total$3,724 $2,553 $1,133 $1,051 $8,461 
Six Months Ended June 28, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
DoD and U.S. Intelligence Community$2,468 $512 $14 $866 $3,860 
Other U.S. government agencies(1)
1,045 1,903 154 46 3,148 
Commercial and non-U.S. customers61 32 900 57 1,050 
Total$3,574 $2,447 $1,068 $969 $8,058 
(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 July 4, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Cost-reimbursement and fixed-price-incentive-fee
$1,007 $430 $90 $324 $1,851 
Firm-fixed-price514 787 345 181 1,827 
Time-and-materials and fixed-price-level-of-effort
336 50 131 38 555 
Total$1,857 $1,267 $566 $543 $4,233 
Three Months Ended June 28, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Cost-reimbursement and fixed-price-incentive-fee
$948 $451 $90 $313 $1,802 
Firm-fixed-price494 749 352 143 1,738 
Time-and-materials and fixed-price-level-of-effort
353 57 118 39 567 
Total$1,795 $1,257 $560 $495 $4,107 
Six Months Ended July 4, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Cost-reimbursement and fixed-price-incentive-fee$2,020 $901 $185 $633 $3,739 
Firm-fixed-price1,011 1,546 704 335 3,596 
Time-and-materials and fixed-price-level-of-effort693 106 244 83 1,126 
Total$3,724 $2,553 $1,133 $1,051 $8,461 
Six Months Ended June 28, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Cost-reimbursement and fixed-price-incentive-fee$1,894 $898 $175 $614 $3,581 
Firm-fixed-price986 1,439 671 282 3,378 
Time-and-materials and fixed-price-level-of-effort694 110 222 73 1,099 
Total$3,574 $2,447 $1,068 $969 $8,058 
Disaggregated revenues by geographic location were as follows:
Three Months Ended July 4, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
United States
$1,849 $1,265 $247 $532 $3,893 
International
8 2 319 11 340 
Total$1,857 $1,267 $566 $543 $4,233 
Three Months Ended June 28, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
United States
$1,788 $1,255 $227 $479 $3,749 
International
7 2 333 16 358 
Total$1,795 $1,257 $560 $495 $4,107 
Six Months Ended July 4, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
United States
$3,708 $2,550 $485 $1,031 $7,774 
International
16 3 648 20 687 
Total$3,724 $2,553 $1,133 $1,051 $8,461 
Six Months Ended June 28, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
United States
$3,558 $2,444 $435 $947 $7,384 
International
16 3 633 22 674 
Total$3,574 $2,447 $1,068 $969 $8,058 
Revenues by customer-type, contract-type and geographic location exclude lease income of $20 million and $37 million for the three and six months ended July 4, 2025, respectively, and $25 million and $49 million for the three and six months ended June 28, 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 itemJuly 4,
2025		January 3,
2025
Contract assets - current:
Unbilled receivablesReceivables, net$838 $842 
Contract liabilities - current:
Deferred revenue(1)
Accounts payable and accrued liabilities$274 $333 
Contract liabilities - non-current:
Deferred revenue(1)
Other long-term liabilities$6 $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 decrease in deferred revenue was primarily due to revenue recognized during the period offset by the timing of advanced payments from customers.
For the three and six months ended July 4, 2025, $62 million and $199 million, respectively, of revenue recognized was included as a contract liability at January 3, 2025. For the three and six months ended June 28, 2024, $54 million and $211 million, respectively, of revenue recognized was included as a contract liability at December 29, 2023.