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Business Segments
 6 Months Ended
Jul. 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 July 4, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Revenues$1,872 $1,272 $566 $543 $4,253 
Less:
Direct labor490 235 105 108 938 
Amortization of intangible assets7 6 7 12 32 
Other segment expense1,187 720 414 382 2,703 
Segment operating income$188 $311 $40 $41 $580 
Corporate expense9 
Total operating income$571 
Three Months Ended June 28, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Revenues$1,813 $1,263 $561 $495 $4,132 
Less:
Direct labor
492 242 104 104 942 
Amortization of intangible assets5 7 7 17 36 
Other segment expense1,133 707 461 340 2,641 
Segment operating income (loss)
$183 $307 $(11)$34 $513 
Corporate expense
38 
Total operating income$475 
Six Months Ended July 4, 2025
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Revenues$3,750 $2,563 $1,134 $1,051 $8,498 
Less:
Direct labor993 479 208 217 1,897 
Amortization of intangible assets12 12 14 24 62 
Other segment expense2,372 1,462 835 735 5,404 
Segment operating income$373 $610 $77 $75 $1,135 
Corporate expense34 
Total operating income$1,101 
Six Months Ended June 28, 2024
(in millions)National Security & DigitalHealth & CivilCommercial & InternationalDefense SystemsTotal
Revenues$3,606 $2,462 $1,070 $969 $8,107 
Less:
Direct labor
971 479 203 204 1,857 
Amortization of intangible assets11 13 15 34 73 
Other segment expense2,266 1,441 829 676 5,212 
Segment operating income$358 $529 $23 $55 $965 
Corporate expense
75 
Total operating income$890 
The statement of operations performance measures used to evaluate segment performance are revenues and operating income. As a result, "Interest expense, net," "Other income (expense), 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.